How Investors Are Reacting To Waste Management (WM) Boosting 2026 Dividend And Expanding Buyback Program

• Earlier this month, Waste Management’s board approved a capital allocation program featuring a planned 14.5% dividend rate increase for 2026 to US$3.78 per share annually and a new US$3.00 billion share repurchase authorization, replacing the prior US$1.50 billion plan.
• This marks the company’s twenty-third consecutive year of dividend increases and signals ongoing commitment to returning cash to shareholders alongside operational investments.
• Next, we’ll examine how WM’s larger 2026 dividend and fresh US$3.00 billion buyback authorization influence its longer-term investment narrative.

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Waste Management Investment Narrative Recap

To own Waste Management, you generally need to believe in steady demand for essential waste and recycling services, plus the company’s ability to convert that into reliable cash generation. The newly approved 2026 dividend hike and enlarged buyback program reinforce that cash return focus, but they do not materially change the most immediate catalysts around technology-driven margin improvement or the key risks tied to leverage after the Stericycle acquisition.

The fresh US$3.00 billion share repurchase authorization sits alongside the planned 2026 dividend increase as part of a broader capital allocation framework. For investors watching how WM balances shareholder returns with investment in recycling, renewable energy and healthcare integration, this updated buyback capacity adds context to the near term story without eliminating underlying risks like higher debt and regulatory exposure.

Yet alongside this richer dividend and buyback profile, WM’s higher leverage after the Stericycle deal is something investors should be aware of...

Read the full narrative on Waste Management (it's free!)

Waste Management’s narrative projects $29.4 billion revenue and $4.0 billion earnings by 2028. This requires 7.0% yearly revenue growth and about a $1.3 billion earnings increase from $2.7 billion today.

Uncover how Waste Management's forecasts yield a $246.52 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Ten fair value estimates from the Simply Wall St Community span roughly US$210 to US$246.52, underscoring how far apart individual views on WM can be. When you overlay that dispersion with the company’s increased leverage following the Stericycle acquisition, it highlights why many investors will want to weigh several perspectives on WM’s risk and return profile before committing capital.

Explore 10 other fair value estimates on Waste Management - why the stock might be worth just $210.00!

Build Your Own Waste Management Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Waste Management research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Waste Management research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Waste Management's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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