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It’s rare to find a stock that outperforms the S&P 500, let alone an income stock. The very few stocks that beat this benchmark are considered high-growth, high-risk and often do not pay dividends.
However, one revenue gem has managed to outperform the S&P 500 over the past 10 years.
This gem is Waste Management Inc. (NYSE:MW), a North American waste management company with a market capitalization of US$83.38 billion. Waste Management has consistently paid its shareholders over the past 26 years.
The stock has performed exceptionally well over the past decade, delivering a total return of 476.12%, compared to 231.29% for the S&P 500.
To put this into perspective, a $10,000 investment in the stock in June 2014 via the DRIP strategy would now be worth $57,605. A $10,000 investment in the S&P 500 in June 2014 would be worth $33,137 today.
Waste Management currently offers a dividend yield of 1.5%, making it less attractive to yield-seeking investors. Its dividend yield has been quite low over the years, so most of the growth has come from price appreciation.
The company’s strong balance sheet and low dividend payout ratio of 46.55% reveal its ability to maintain and grow its dividends. However, its low dividend yields make it less ideal for investors looking for passive income.
Are you looking for higher yielding opportunities?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to achieve massive returns, but not through dividend stocks… Some private market real estate investments give retail investors the opportunity to capitalize on these high yield markets. opportunities and Benzinga identified some of the most attractive options to consider.
For example, the investment platform backed by Jeff Bezos has just launched its Private credit fund, which provides access to a pool of short-term loans backed by residential real estate with a net annual return target of 7% to 9% paid monthly to investors. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high-yield deals.
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