"Shares of Waste Management Inc. ( NYSE: WM) have retreated from a $242.58 all-time high in June and are down 9.4% since then. Year to date, the stock is 8.9% higher, underperforming the S&P 500. As the market continues to run higher after a significant downturn earlier in the year, the industrials sector staple maintains its position as a defensive stock, with the company currently boasting 84% institutional ownership."
"Although Waste Management is a trash-hauling behemoth today, it had humble beginnings. Harm Huizenga began picking up garbage in Chicago in 1893 for $1.25 per wagonload. About 75 years later, his grandson Wayne Huizenga resurrected the family business, founded Waste Management, and quickly undertook a growth-by-acquisition strategy, buying up hundreds of small trash collection services across the country. Those days are long gone. U.S. Waste Services, which had been a publicly traded company since 1987, acquired Waste Management in 1998 and assumed the Waste Management name."
"The stock has generated total returns of more than 1,050% over three decades, compared to an almost 990% return by the S&P 500. The trash hauler began paying a dividend when the two companies merged, and it has consistently increased the payout every year since 2004. Since then, the dividend has grown from $0.75 per share to $3.30 per share, and it has raised the payout by a compound growth rate of 7.2% annually for the past 10 years."
Waste Management shares have retreated from a $242.58 June high and are down 9.4% since then, while year-to-date performance is up 8.9%, lagging the S&P 500. The company operates as a defensive industrials stock and holds 84% institutional ownership. The business traces back to 1893 with Harm Huizenga collecting garbage for $1.25 per wagonload and later expanded through Wayne Huizenga’s growth-by-acquisition strategy. U.S. Waste Services acquired Waste Management in 1998 and adopted its name. Over three decades, the stock returned over 1,050% versus nearly 990% for the S&P, and dividends grew from $0.75 to $3.30 with a 7.2% CAGR over ten years.
Read at 24/7 Wall St.
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