WM announces 2025 dividend increase

Houston-based WM (formerly Waste Management) says its board of directors has approved a 10 percent increase in the planned quarterly dividend rate for 2025.

According to WM, the dividend paid quarterly for each share will rise from its current 75 cents level to 82.5 cents per share next year.

The increase brings the annual dividend rate to $3.30 per share, up from $3.00, and marks the company’s 22 consecutive year of offering a dividend increase, says WM.

“Our operating and financial results showcase the power of our business to generate strong and consistent cash flow, which positions us to fund all of our capital allocation priorities,” says Jim Fish, president and CEO of WM.

“This year, we prioritized the strategic acquisition of Stericycle, the continued investment in high-return growth projects in our renewable energy and recycling businesses, and an outpaced year of solid waste acquisitions. With the strength of our cash flow generation and strong balance sheet, we did all of this while also paying more than $1.2 billion in dividends to our shareholders.”

Continues Fish, “The double-digit dividend rate increase signals our confidence in our ability to continue to generate robust cash flow in 2025. For the year ahead and in the long-term, we are dedicated to a disciplined approach to capital allocation.”

He concludes, “Our focus remains on delivering strong shareholder returns through dividend growth and prudent share repurchases, fostering long-term strategic growth from organic and inorganic opportunities, and maintaining a solid investment grade credit rating.”

WM says it retains authorization from its board of directors to repurchase $1.24 billion of the company’s common stock, as previously announced, but says it has temporarily suspended share repurchases.

“Pausing share repurchase activity reflects the company’s commitment to return to targeted leverage levels within about 18 months after the acquisition of Stericycle,” says the firm.

The waste and recycling firm says it expects the first increased dividend will be paid in March of next year.