Waste management company GFL Environmental (GFL) just raised its quarterly dividend by 10%.
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The Miami, Florida-based company says that, going forward, it will pay a quarterly dividend of 1.69 per share to its stockholders. Previously, GFL Environmental paid a quarterly dividend of $1.54 a share. The stock has a dividend yield of 0.15%.
The new dividend will be paid on April 30 to shareholders of record as of April 13. This was the sixth consecutive year that GFL Environmental increased its dividend payment. The company provides solid waste removal services across Canada and in 18 U.S. states. It employs more than 20,000 people.
Garbage Is Big Business
While messy and smelly, garbage removal is big business. Waste Management (WM), a rival of GFL Environmental, pays a hefty dividend of $0.95 per share, giving it a yield of close to 2%. Last December, Waste Management increased its dividend payout by 15%.
In the case of GFL Environmental, the dividend compensates shareholders for some share price weakness. While up 5% this year, GFL’s stock has declined 8% over the past 12 months and has only gained 40% in the past five years, underperforming the broader market.
Is GFL Stock a Buy?
GFL stock has a consensus Strong Buy rating among 13 analysts. That rating is based on 12 Buy and one Hold ratings issued in the past three months. The average GFL price target of $56.90 implies 27.66% upside from current levels.
