WM is underperforming the S&P 500 in 2025, with disappointing results in recycling and healthcare. Despite this, the company is forecasting strong free cash flow, supporting future dividend increases. For risk-averse investors seeking passive income, WM remains a solid buy.

In the third quarter, WM reported $1.98 in adjusted diluted earnings per share, missing estimates. Its core business thrived, but healthcare and recycling disappointed. Revenue declined due to lower market prices for recycled commodities, impacting overall performance.

WM’s total company revenue for 2025 is expected to be at the low end of its prior guidance range. Despite this, WM generates significant free cash flow, supporting dividend growth. The stock remains a reliable choice for investors seeking income and stability.

WM has a history of raising dividends and has the cash flow to support further increases. With a reasonable valuation and strong cash flow projections, WM is a safe investment option. Investors looking for stability in their portfolios should consider adding WM.

The Motley Fool Stock Advisor team did not list WM among the top 10 best stocks. However, WM’s consistency in dividend growth and cash flow generation make it an attractive option for income-focused investors. While it may not offer explosive growth, WM provides stability in uncertain markets.

Read more at Yahoo Finance: This Rock-Solid Dividend Stock Will Reward You Through Thick and Thin