1.14% Dividend Yield, 21 Years of Dividend Hikes – The Environmental Services Giant

Powering Waste Management Across the U.S.

An indispensable network for handling America’s waste
Operating across more than 40 states with a comprehensive infrastructure of collection centers, transfer stations, recycling centers, and landfills, this company dominates the non-hazardous solid waste industry by offering end-to-end environmental services. It serves residential, commercial, municipal, and industrial customers at scale, leveraging operational intensity and vertical integration to optimize route efficiency, material recovery, and disposal processes. With a fleet of nearly 17,000 vehicles, the company processes millions of tons of waste annually, benefitting from robust technology platforms for route optimization and customer service management which enhance service dependability and scale advantages.

Republic Services (RSG)

Financial Score: 87 / 99

Quick Tip

To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.

Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.

Republic Services is the second-largest waste management provider in the U.S. based on revenue, controlling about 22% of the market. The company reported approximately $4.21 billion in revenue for Q3 2025, reflecting 3.3% year-over-year growth driven by 1.7% organic growth and 1.6% acquisitions. Operational scale is reinforced by nearly 240 transfer stations and 74 recycling centers supporting volume processing, with additional diversification from energy projects including 79 landfill gas-to-energy operations. Strong cost control lifted adjusted EBITDA margins to 32.8%, while net income reached $550 million, or $1.76 per diluted share, highlighting solid profitability. Free cash flow generation of $2.19 billion year-to-date funds growth and dividends comfortably.

Dividend foundation built on operational discipline
The company maintains a conservative payout ratio of about 35%, with a forward annual dividend of $2.52, yielding 1.14%. Its 21 consecutive years of dividend increases and consistent 5% five-year dividend growth indicate a disciplined capital allocation strategy that balances shareholder returns with reinvestment in infrastructure and acquisitions. Pricing power remains strong, averaging nearly 6% increases year-over-year, even amid volume softness linked to economic fluctuations in construction and manufacturing. High customer retention and increased net promoter scores validate revenue stability as the waste industry adapts.

Q3 2025 operational and financial metrics
Volume pressures have been offset by pricing and acquisitions, with landfill special waste volumes growing 18% and landfill event-related revenues adding $35 million. Investment in renewable natural gas (RNG) continues, with new projects increasing methane capture capacity by 15 million MMBtu annually. The company’s capex of $1.18 billion through Q3 supports asset modernization and growth initiatives, maintaining asset integrity and sustainability. Debt levels and cash liquidity remain well-managed, ensuring financial flexibility during market shifts.

Fun Fact – Renewable Natural Gas capacity expansion
Republic Services added a new RNG project in Q3 2025, capable of converting methane emissions into 15 million MMBtu of pipeline-quality gas annually. This renewable energy initiative reduces greenhouse gases while generating revenue through regulatory credits and energy sales.

Final Take

Republic Services holds a BeatMarket Financial Score of 87, reflecting solid profitability, stable cash flow, and manageable leverage. This score indicates the company operates with healthy margins and effective risk controls but does not reach the top-tier reliability seen in firms scoring above 90. Consistent dividend growth with a payout ratio near 35% supports sustainability without overextending cash resources. Key financial risks include economic cyclicality impacting waste volumes, regulatory shifts affecting operational costs, and inflationary pressures on fuel and labor expenses. The company’s scale, pricing strategy, and investments in renewable energy projects contribute to earnings resilience, positioning it as a financially sound but not impervious player in the waste management sector.