Waste Management, Inc. (WM), a leading waste management and environmental services company, is poised to unveil its third-quarter earnings results after the market closes on Monday, October 28th. Wall Street analysts are expecting a robust performance, with estimates pointing towards earnings per share of $1.89, a significant jump from the $1.63 reported in the same period last year. Furthermore, revenue projections for the quarter stand at $5.51 billion, exceeding the $5.2 billion achieved in the prior year.
This anticipated growth has fueled excitement among investors, particularly those seeking attractive dividend yields. Waste Management currently boasts an annual dividend yield of 1.44%, translating to a quarterly payout of 75 cents per share ($3.00 annually). For investors aiming to generate passive income, the question arises: How many shares are required to achieve a specific monthly dividend target?
Let’s consider two scenarios:
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$500 Monthly Dividend:
To earn $500 per month, an investor would need to generate $6,000 annually ($500 x 12 months). Dividing this target by Waste Management’s annual dividend of $3.00 per share yields a required ownership of 2,000 shares. This translates to an investment of approximately $417,820, based on the current stock price.*
$100 Monthly Dividend:
For a more conservative goal of $100 per month ($1,200 annually), the required share count drops to 400 shares. This translates to an investment of roughly $83,564.It’s crucial to note that dividend yields are subject to change due to fluctuations in both the dividend payment and the stock price. The yield is calculated by dividing the annual dividend by the current stock price. Therefore, as the stock price rises or falls, the yield will fluctuate accordingly. Similarly, any adjustments to the company’s dividend payment will also impact the yield.
Recently, William Blair analyst Trevor Romeo initiated coverage on Waste Management with an Outperform rating, further bolstering investor confidence in the company’s prospects. With strong earnings expectations and an attractive dividend yield, Waste Management appears well-positioned to attract both growth and income-oriented investors.
Waste Management’s stock closed at $208.91 on Thursday, down by 1.4%. As investors eagerly await the earnings release, it will be interesting to see how the market reacts to the actual results and whether they align with analyst projections.