Republic Services' 17% pullback opens rare entry into a dividend compounder with CPI-linked pricing

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Summary · why it matters

Republic Services has pulled back 17% over the past year, offering a rare entry into a non-discretionary compounder with CPI-linked pricing that expanded EBITDA margins to 32%. The company's dividend grew from $0.06 per quarter in 2003 to $0.625 per quarter in 2026, backed by $2.43 billion in 2025 free cash flow and a payout ratio with decades of room to grow. Cascade Investment, a 10% owner, accumulated RSG shares in May 2026 at prices between $197 and $215, reinforcing institutional conviction at current prices.

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