Friday, August 12, 2011

Recent Buy...

As some of you know, I began investing in individual companies back in January 2010.  Then in January 2011 DividendPartisan was created.  Well, I recently made another purchase - nothing fancy, just adding shares to a company I already own.  In fact, I initiated a position in this company with only 15 shares back in January 2010 (that was all I could afford). 

That purchase was one of my first stock purchases EVER, and was part of the 'original six;' the six companies I started with to create my dividend income portfolio.  Well, with the recent massive drop in stock price, I decided to pick up some more shares and thereby considerably lower my cost/share.

The company I just purchased was:

Waste Management (WM)
Founded in 1894, Waste Management is the nation's largest provider of collection, transfer, recycling, disposal, and waste-to-energy services. The firm serves nearly 20 million customers in the commercial, industrial, municipal, and residential markets. It has 268 landfills that receive 115 million tons of waste per year. Waste Management is the largest provider of domestic recycling services and generates roughly 56% of its revenue from its waste collection business. (Source - Morningstar)

Some quick facts about WM:

*8 straight years of higher dividends
*Currently trading at 12 times earnings (past two decades average: 24 times earnings...time to buy!)
*Large 4.48% yield (as of 05 Aug)
*Nation's largest trash collection company

Waste Management shares fell 5% after it missed earnings at the end of July, and then continued to fall (with the rest of the market) another few points as the DOW crumbled in the beginning of August. As a result, I saw it as an opportunity to add to my position and bought 30 shares at $30.70.   I expect it's share price to rebound close to $36 if not better eventually.

With the purchase of Realty Income and this addition to WM, Waste Management now represents 7% of my dividend income portfolio; a portion of which I am quite comfortable with for now.

What do you think of WM? Am I an idiot? :) Or are you bullish on this company?

Thanks for reading,


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  1. I also recently bought WM. I don't expect a large cap gain from it, but hopefully steady income. It is the type of stock I would buy over a bond.

  2. I have WM in my dividend portfolio, and I would have bought more if I were able.

  3. Anonymous^2, :)

    I'm glad at least several others agree that WM is a great dividend play. I know the Motley Fool and it's readers also think very positively of it as well. I really think it will rebound to close to $36 a share within the next 12 months. Take care,


  4. Awesome pick....The world's trash is our juicy dividend paying treasure!

  5. Partisan,

    I looked at WM a few times in the past, but never liked the valuation. I was also concerned about the falling revenues and EPS over the last 5 years. I guess WM, like many companies, is sensitive to the economy based simply on the number of clients who use their services. You would think trash would be a pretty steady thing, with increasing populations, but I found out it's a little more complicated than that.

    Anyway, my point is that it seems like a good pick now. The price has come down with the market and its value has risen as a result. It has a solid yield, and trash isn't going anywhere. They seem to have a lock on the landfill side of things as well.

    It's on my list. I'm still looking at adding more oil, I like INTC, GE might not be bad right now and of course the old standby combo of JNJ and PG appear attractive as well. So many choices!

    Good luck with your WM position. I may soon join you!

    Take care.

  6. I also thought GE is looking fairly attractive at these prices.