10 Best Environmental Stocks to Buy

8. Waste Management, Inc. (NYSE:WM)

 Number of Hedge Fund Holders: 54

Headquartered in Texas, Waste Management, Inc. (NYSE:WM) specializes in waste management and comprehensive waste as an essential environmental service. As an integrated waste company, it is involved in waste collecting, recycling, and managing landfills.

Waste Management, Inc. (NYSE:WM) has a continued interest in continuously investing in recycling and renewable energy growth projects, with the latest one being a newly set up $40 million, 57,860-square-foot material recovery facility (MRF) in Philadelphia that looks to handle the recycling needs of the region and other areas of the suburban counties. The legacy business continues to focus on expansion with its mergers and acquisitions strategy and has recently completed a $7.2 billion acquisition of Stericycle, Inc., a company specializing in collecting and disposing of medical waste. This strategic move strengthens WM’s comprehensive environmental solutions and is a step into the growing healthcare market. The merger will also help advance the company’s sustainability commitments, solidifying its position as an environmental solutions company.

Waste Management, Inc. (NYSE:WM) presented a strong outlook in 2024, ending with a total revenue of $21.39 billion and a $5.89 billion revenue for Q4, reaching a year-on-year Quarterly Revenue Growth of 7.90%. In December 2024, WM announced a raise in its quarterly dividend rate for 2025 from $0.75 to $0.825 per share, registering a 10% increase. This cranked up the annual dividend to $3.30 per share, marking the company’s twenty-second consecutive year of dividend increases. In Q4 of 2024, the company reported business growth in solid waste, enabling a company-best full-year operating EBITDA. The success was driven by the optimization of operational costs and a strong execution of price programs.

Waste Management’s (NYSE:WM) strong legacy and continued investment in sustainability make it a lucrative environmental stock to invest in. The commitment to environmental sustainability is evident through its significant investments in renewable energy. Between 2022 and 2026, the company plans to invest $3 billion, with $1.6 billion directed toward building 20 natural gas plants at its landfills and $1.4 billion to enhance its recycling facilities. The strong focus on renewable energy aligns with the rising energy demand driven by transportation and artificial intelligence data centers.

Overall, through strategic acquisitions, financial growth, and a strong commitment to sustainability, Waste Management (NYSE:WM) continues to position itself as a strong environmental stock candidate.