Unlike a lot of other businesses, Waste Management has raised prices despite a slowing economy. And CEO David Steiner doesn’t see any reason to stop.
Steiner credits the company’s pricing program for three years of solid earnings growth and margin expansion. “Why in the world would we change our pricing philosophy at this point in time?”
A good portion of those profits make their way back to shareholders. In fact, over $7 billion has been put into investors’ pockets over the last five years, Steiner said, and $850 million will go toward a buyback in 2008. Plus, Waste Management’s 9.7% cash yield provides steady income for anyone who owns the stock.
Cramer’s bullish on WMI. “It’s a consistent, no-surprise deliverer,” he said.
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