Waste Management (WM) has increased its dividend payments each year since 2003. The company is the largest publicly traded waste management company, with a market cap of $22 billion. The company's largest competitor is Republic Services (RSG) which has a market cap of about $14 billion. Waste Management was founded in 1968 and is currently headquartered in Houston, Texas. Waste Management is the second company analyzed in the Dividend Achievers series. The company's business operations are examined below.
Business Overview
Waste Management's operations are divided into 6 segments. Each segment is shown below along with the percent of total revenue each segment contributed to the company in its most recent quarterly report:
The Collection segment is Waste Management's largest by far. The segment collets payments for collecting waste and recyclables from wherever they are generated and transporting them to a disposal site, recovery facility, or transfer station. The Collection segment generates revenue from commercial, residential, and industrial clients.
The Landfill segment is Waste Management's second largest segment based on revenue. The segment charges tipping fees for waste disposed in each landfill. Waste Management has the largest landfill network in North America. The company had 262 solid waste landfills and 5 hazardoues waste landfills at the end of its fiscal 2013.
The Transfer segment operates 300 waste transfer stations in North America. Waste transfer stations act to compact and transfer waste for delivery to its final destination.
Waste Management's Wheelabrator segment includes 16 waste-to-energy facilities and 4 independent power production plants. The waste-to-energy facilities burn solid waste releasing heat which causes steam to generate electricity. The company's independent power producing plants convert waste and conventional fuels into steam. Despite impressive sounding operations, the Wheelabrator segment is Waste Management's smallest based on revenue.
