Republic Services Group (
) keeps taking out the trash and converting it into dividends for
The company, incorporated in 1998, has grown through mergers
and acquisitions to become one of the biggest solid waste
collectors in the U.S., second only toWaste Management (
). It had been the No. 3 player until 2008, when it bought rival
Allied Waste Industries for $6.1 billion.
After the merger was announced in July that year, Waste
Management made an unsolicited offer to buy Republic Services,
which was rejected. Republic turned down a second attempt from
Waste Management to thwart the merger by sweetening its bid.
After the Allied merger was completed in December 2008,
Republic moved its headquarters from Florida to Phoenix, where
Allied was based.
Now Republic provides waste and trash disposal services
through more than 800 local sites in the U.S. and Puerto Rico to
more than 13 million customers. It also operates more than 75
recycling centers, and provides related collection services for
electronic recycling, household hazardous waste, yard waste and
medical sharps, among others.
The waste hauler in July announced an increase in its
quarterly dividend from 23.5 cents a share to 26 cents, or $1.04
on an annual basis. That works out to a 2.9% yield, above the
S&P 500's 1.88%.
Annual per-share earnings fell 2% in 2012 and rose 3% last
year. Analysts expect a 1% dip this year and a 10% increase in
The stock has been working on a flat base since late July and
is just shy of a 36.71 buy point. It has been holding above its
50-day moving average since Feb. 7, when shares surged 5% in
heavy volume after Republic's fourth-quarter profit and sales
It sank to the 50-day line April 25 on a Q1 earnings miss, but
closed in the upper half of the session range.