I see this with lots of utility companies. I guess a predictable revenue stream? I see lots of companies like WM, VE, DUK, NGG pay decent dividends, but their balance sheets look a bit spooky. I guess this is the norm?
it only makes sense if they have a predictable revenue stream that assures a profit. WM has to bid for contracts, and some of them can be losers. Not like DUK than when they have a f%^kup that they ask the ratepayers for more money.
September 19 Waste Management (WM -3.4%) is downgraded to Underweight from Neutral at J.P. Morgan, which says industry conditions have become more challenging due to declines in recycled commodity prices and its exposure to spot electricity prices. The firm also says a lower cash flow outlook cuts into WM's ability to increase dividends or buy back shares.