NEW YORK Aug 19 Investors have been attracted
to Waste Management Inc's high dividends, but the stock
of the trash hauling company is at risk of falling as much as 10
percent to 15 percent if it continues missing profit
expectations, Barron's financial weekly reported on Sunday.
Waste Management's revenue, earnings, margins and cash flow
have been stagnant for years as many investors seem content
collecting a 4 percent annual yield on the stock, Barron's said.
It said a Waste Management spokeswoman noted that the
company already has started to slow its rate of dividend
increases. After two years of 10-cent increases, the payout was
up 6 cents a share in 2012 from 2011.
"With smaller increases, the stock is likely dead money at
best, and is at risk of falling 10 percent to 15 percent toward
$30 if the company's habit of missing profit expectations
continues," the Barron's report said.
Waste Management closed at $35.66 per share on Friday.
The dividend consumes most of Waste Management's net income
and free cash flow, Barron's said. It said a few corporate
insiders had sold about 180,000 shares during the past six
months near current prices instead of holding them for the