Waste Management, Inc. (NYSE:WM) reported a refreshed $1.35 billion buyback program and raised its quarterly dividend from $0.545 to $0.575 per share.
The company announced that its Board of Directors has approved a 5.5% increase in the planned quarterly dividend rate for 2021, from $0.545 to $0.575 per share. On an annual basis, the per share dividend rate increases from $2.18 to $2.30.
Said CEO Jim Fish, "For 18 consecutive years we have been able to increase our dividends due to the strength of our business and the growth in our free cash flow generation. We have a resilient business model and expect to continue to perform well in the coming years, positioning us to confidently increase our 2021 dividend rate.
"Now that we have closed the acquisition of Advanced Disposal, our remaining capital allocation plan, after paying our dividend, will initially focus on strengthening our balance sheet to quickly return to our targeted leverage ratio of 2.5 times to three times.
“We are pleased to be able to return this cash to our shareholders, as dividends remain a top priority in utilizing our free cash flow."
Waste Management’s Board of Directors must declare each future quarterly dividend prior to payment. The Board of Directors intends to declare the first quarter 2021 dividend in February, at which time the Company will announce the record and payment dates for this dividend. It is expected that the first increased dividend will be paid in March 2021.
WM shares gained $1.57, or 1.4%, to $116.35.
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