Waste Management, Inc. (WM): Is This Stock Set to Shoot Up?

However, the company is also investing about 40% of free cash flow into developing new methods and improving existing ones. As a result, investors need to be convinced that the investments will pay off by returning even more free cash flow.

Unfortunately, Waste Management’s investments over the last decade have only helped the company to tread water, so investors should write off all cash flow that is not immediately distributed to shareholders — 60% of distributed cash flow multiplied by 6.2% yield equals 3.72% actual free cash flow yield. A 3.72% yield is not good enough to attract my money, but you may feel differently.

The article Is This Stock Set to Shoot Up? originally appeared on Fool.com and is written by Ted Cooper.

Ted is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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