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It’s rare to find a stock that outperforms the S&P 500, let alone an income stock. The very few stocks that beat this benchmark index are considered high-growth and risky stocks and often do not pay dividends.
However, one income gem has managed to outperform the S&P 500 over the past decade.
This gem is Waste Management Inc (NYSE:WM), a North American waste management company with a market capitalization of $83.38 billion USD. Waste Management has consistently paid its shareholders for the past 26 years.
The stock has performed exceptionally well over the past decade, with a total return of 476.12% compared to the S&P 500 (231.29%).
To put this into perspective, a $10,000 investment in the stock in June 2014 through the DRIP strategy would now be worth $57,605. A $10,000 investment in the S&P 500 in June 2014 would be worth $33,137 today.
Waste Management currently offers a dividend yield of 1.5%, making it less attractive for yield-chasing investors. The dividend yield has been quite low over the years and therefore most of the growth has come from price increases.
The company’s strong balance sheet and low dividend payout ratio of 46.55% demonstrate the company’s ability to maintain and grow its dividends. However, its low dividend yield makes it less ideal for income investors looking for passive income.
Looking for opportunities with higher returns?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to earn huge returns, but not through dividend stocks… Certain private market real estate investments offer retail investors the opportunity to take advantage of these high-yield investments. possibilities and Benzinga has identified some of the most attractive options for you.
For example, the Jeff Bezos-backed investment platform just launched its own investment platform Private credit fund, which provides access to a pool of short-term loans backed by residential real estate, with a net annual return of 7% to 9% paid out to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
Don’t miss this opportunity to take advantage of high-yield investments while interest rates are high. See Benzinga’s favorite high-yield deals.
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This article This Income Stock Has Outperformed the S&P 500 for More Than a Decade originally appeared on Benzinga.com
