Waste Management (NYSE: WM) just received a big endorsement from HSBC Securities, upgrading the stock from Hold to Buy and raising their price target to $265. This shift isn’t just about WM being a defensive play — it’s about the company proving it can thrive even in challenging conditions.
HSBC pointed out that WM has shown impressive pricing power, passing higher costs onto customers without hurting volumes. This ability highlights their market dominance and operational strength, which are increasingly important as economic uncertainty lingers. WM’s recent earnings also beat expectations, with stronger revenue growth and margin expansion, showing that management’s strategy to control costs and enhance their recycling operations is paying off.
On top of these performance drivers, Waste Management’s guidance suggests continued momentum. Strong demand in their core solid waste business and disciplined cost initiatives position the company to outperform peers well into the next year.
📈 Dividend Fundamentals: A Quiet Powerhouse
➔ Current dividend yield is around 1.5%, offering steady, reliable income.
➔ Waste Management has increased its dividend for 20 consecutive years, reflecting deep financial strength.
➔ The payout ratio remains comfortably under 60%, leaving room for continued dividend growth.
➔ WM’s cash flow generation supports future hikes without straining the balance sheet, making it a strong pick for income-focused investors.