June 23, 2026 a 07:46 am
RSG: Dividend Analysis - Republic Services, Inc.
Republic Services, Inc., with its robust market capital, presents a compelling case for dividend investors. Its consistent dividend history over 24 years reflects stability, while the moderate yield of 1.22% aligns it with income-focused portfolios. The continued, albeit slow, dividend growth over the past five years further reinforces confidence in its shareholder return strategy.
📊 Overview
Republic Services operates in a solid sector, ensuring long-term business stability. The following table provides crucial metrics:
| Metric | Value |
|---|---|
| Sector | Environmental Services |
| Dividend Yield | 1.22% |
| Current Dividend Per Share | 2.37 USD |
| Dividend History | 24 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Republic Services boasts an impressive 24-year track record of dividend payments, indicating a strong dedication to returning value to shareholders. This consistent history is a positive indicator of financial health and management’s commitment to shareholder value.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.875 |
| 2025 | 2.365 |
| 2024 | 1.650 |
| 2023 | 2.060 |
| 2022 | 1.910 |
📈 Dividend Growth
Examining dividend growth highlights a steady but unspectacular trend. This measured growth allows Republic Services to maintain payout reliability while accruing enough earnings for reinvestment in business operations. Slow growth underscores stability, which is favorable for risk-averse investors.
| Time | Growth |
|---|---|
| 3 years | 7.38% |
| 5 years | 7.34% |
The average dividend growth is 7.34% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Payout ratios are critical in understanding dividend sustainability. A lower payout ratio often indicates a safer dividend as the company retains ample earnings to sustain its operations and growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 33.72% |
| Free Cash Flow-based | 28.06% |
The EPS payout ratio of 33.72% and FCF payout ratio of 28.06% both reflect a conservative approach, ensuring dividend continuity in adversity.
🧮 Cashflow & Capital Efficiency
Assessing cash flows and capital efficiency is essential for understanding a firm's resource utilization. High cash flow reliability supports sustainable dividends, while effective capital allocation indicates corporate health.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.64% | 3.29% | 3.81% |
| Earnings Yield | 3.24% | 3.23% | 3.32% |
| CAPEX to Operating Cash Flow | 43.93% | 47.13% | 45.09% |
| Stock-based Compensation to Revenue | 0% | 0.26% | 0.27% |
| Free Cash Flow / Operating Cash Flow Ratio | 56.08% | 52.87% | 54.91% |
Republic Services' cash flow stability and resource efficiency suggest a sound financial base, aiding predictable dividend distributions.
🏦 Balance Sheet & Leverage Analysis
A robust balance sheet with manageable leverage levels is crucial for a company's long-term viability. Favorable ratios indicate a solid foundation to meet financial obligations and support future growth.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 4.98% | 113.61% | 123.97% |
| Debt-to-Assets | 1.73% | 39.99% | 41.61% |
| Debt-to-Capital | 4.74% | 53.19% | 55.35% |
| Net Debt to EBITDA | 10.20% | 270.31% | 299.25% |
| Current Ratio | 64.23% | 58.28% | 56.32% |
| Quick Ratio | 64.23% | 55.91% | 53.99% |
| Financial Leverage | 287.15% | 284.10% | 297.95% |
The consistent financial leverage, with a relatively low debt-to-equity ratio, bolsters Republic Services' resilience against market fluctuations.
📉 Fundamental Strength & Profitability
Analyzing key profitability metrics like ROE and profit margins provides insights into a company’s efficiency and competitiveness, crucial for long-term shareholder value.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 17.87% | 17.91% | 16.42% |
| Return on Assets | 6.22% | 6.31% | 5.51% |
| Margins | |||
| Net | 12.89% | 12.74% | 11.57% |
| EBIT | 19.09% | 18.60% | 18.18% |
| EBITDA | 30.72% | 29.73% | 28.87% |
| Gross | 41.96% | 30.55% | 29.56% |
| R&D to Revenue | 0% | 0% | 0% |
Republic Services' profitability ratios, particularly with high ROI, are indicative of strong operational efficiency and competitive positioning.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32 out of 40
⭐ Rating
Republic Services, Inc. receives high marks for dividend stability and continuity, coupled with healthy financial metrics. The company's moderate yield, sustained growth, and solid payout ratios compile into a recommendation for income investors keen on balanced risk and steady returns.
Smart Data Insight
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