Republic Services, Inc. (NYSE:RSG) Increases Dividend to $0.67 Per Share

Key Points

• Republic Services raised its quarterly dividend 7.2% to $0.67 per share, equivalent to $2.68 annually and a 1.3% yield. The company has increased its dividend for 22 consecutive years.
• The dividend appears well covered, with a current payout ratio of 35.1%; analysts expect next year’s earnings of $8.00 per share, implying a projected payout ratio of 33.5%.
• Republic Services beat quarterly earnings and revenue estimates, reporting $1.85 in adjusted earnings per share and $4.43 billion in revenue, while revenue increased 4.6% year over year.

Republic Services, Inc. (NYSE:RSG - Get Free Report) declared a quarterly dividend on Tuesday, July 28th. Investors of record on Friday, October 2nd will be paid a dividend of $0.67 per share by the business services provider on Thursday, October 15th. This represents a $2.68 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Friday, October 2nd. This is a 7.2% increase from Republic Services's previous quarterly dividend of $0.6250.

Republic Services has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 22 years. Republic Services has a dividend payout ratio of 35.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Republic Services to earn $8.00 per share next year, which means the company should continue to be able to cover its $2.68 annual dividend with an expected future payout ratio of 33.5%.

Republic Services Stock Performance

Shares of RSG stock opened at $212.05 on Wednesday. The firm has a market capitalization of $64.93 billion, a PE ratio of 30.03, a price-to-earnings-growth ratio of 3.53 and a beta of 0.40. The firm has a fifty day simple moving average of $217.43 and a two-hundred day simple moving average of $214.27. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 1.12. Republic Services has a 12 month low of $196.41 and a 12 month high of $233.42.

Republic Services (NYSE:RSG - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The business services provider reported $1.85 earnings per share for the quarter, beating analysts' consensus estimates of $1.81 by $0.04. The firm had revenue of $4.43 billion for the quarter, compared to analyst estimates of $4.36 billion. Republic Services had a net margin of 12.94% and a return on equity of 18.69%. The business's quarterly revenue was up 4.6% compared to the same quarter last year. During the same period last year, the firm earned $1.77 earnings per share. Republic Services has set its FY 2026 guidance at 7.230-7.280 EPS. Analysts forecast that Republic Services will post 7.27 EPS for the current fiscal year.

Insider Activity at Republic Services

In other Republic Services news, major shareholder Cascade Investment, L.L.C. purchased 324,810 shares of the company's stock in a transaction that occurred on Friday, September 11th. The shares were acquired at an average cost of $222.89 per share, for a total transaction of $72,396,900.90. Following the completion of the acquisition, the insider owned 117,058,444 shares of the company's stock, valued at $26,091,156,583.16. The trade was a 0.28% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders purchased 6,254,462 shares of company stock worth $1,380,321,958 over the last three months. Company insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On Republic Services

A number of hedge funds and other institutional investors have recently made changes to their positions in RSG. BlackRock Inc. bought a new stake in Republic Services in the second quarter worth about $3,798,092,000. State Street Corp grew its position in shares of Republic Services by 1.6% during the 2nd quarter. State Street Corp now owns 9,953,507 shares of the business services provider's stock valued at $2,120,893,000 after acquiring an additional 160,051 shares during the period. Capital World Investors increased its stake in shares of Republic Services by 27.7% during the 4th quarter. Capital World Investors now owns 8,765,623 shares of the business services provider's stock worth $1,857,698,000 after purchasing an additional 1,899,183 shares during the last quarter. Bank of America Corp DE bought a new stake in shares of Republic Services in the 2nd quarter worth approximately $682,573,000. Finally, Allspring Global Investments Holdings LLC lifted its stake in Republic Services by 68.0% in the first quarter. Allspring Global Investments Holdings LLC now owns 2,256,190 shares of the business services provider's stock valued at $497,828,000 after purchasing an additional 913,249 shares during the last quarter. 57.73% of the stock is owned by hedge funds and other institutional investors.

Republic Services Company Profile

Republic Services, Inc NYSE: RSG is an environmental services company that provides non-hazardous solid waste collection, transfer, disposal and recycling services. Its customers include households, businesses, industrial facilities and municipalities.

The company's operations include residential and commercial waste collection, roll-off and temporary container services, landfill management, transfer stations, recycling processing and related environmental solutions. Republic also provides services involving hazardous waste, organics, energy recovery and other specialized waste streams through selected operations.

Republic Services serves communities and customers across the United States, with operations spanning a broad network of collection, transfer, recycling and disposal facilities.

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