This Income Stock Has Outperformed The S&P 500 For Over A Decade

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 high-risk and often do not pay dividends. 

However, one income gem has managed to outperform the S&P 500 over the past 10 years. 

This gem is Waste Management Inc WM, a North American waste management company with a market cap of $83.38 billion USD. Waste Management has consistently paid its shareholders for the last 26 years. 

The stock has performed exceptionally well over the past decade, delivering a total return of 476.12% compared to the S&P 500 231.29%.

To put this into perspective, an investment of $10,000 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%, which makes it less attractive for yield-chasing investors. Its dividend yield has been quite low over the years, hence most of the growth has resulted from price appreciation.

The company's strong balance sheet and low dividend payout ratio of 46.55% reveal its ability to sustain and grow its dividends. However, its low dividend yields make it less ideal for income investors looking for passive income.

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For example, the Jeff Bezos-backed investment platform just launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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