Analysis – Waste Management Inc. Increases Dividend by 3%

WM

Waste Management Incorporated announced a regular quarterly dividend of $0.385 per share, a 3 percent increase from the prior rate of $0.375 per share.  The dividend will be paid at the new higher rate on March 20, 2015 to shareholders of record at close of business on March 9, 2015.

Date Quarterly Dividend
3/9/2015 0.385
12/3/2014 0.375
9/3/2014 0.375
6/4/2014 0.375
3/6/2014 0.375
12/2/2013 0.365
9/4/2013 0.365
6/5/2013 0.365
3/7/2013 0.365
11/26/2012 0.355
9/5/2012 0.355
6/6/2012 0.355
3/7/2012 0.355
11/28/2011 0.34
9/1/2011 0.34
5/31/2011 0.34
3/9/2011 0.34
11/29/2010 0.315
9/2/2010 0.315
5/27/2010 0.315
3/1/2010 0.315

 

Analysis of Valuation of Waste Management Inc. (Symbol WM).

Waste Management is trading at the top of its average price/sale (P/S) range. Waste Management is trading toward the bottom of its average dividend yield range.

Price 2/26/15 % Yield 5 Year Div. Growth Rate SPS 2015 P/S  Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
54.28 2.8% 2.5 31.10 1.73 0.90 1.73 4.52% 2.75%

Waste Management Inc. Dividend Yield Chart (Click to enlarge)

WM

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found

at http://seekingalpha.com/author/timothy-mcintosh/articles

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