“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
A long holding period can reveal the full effect of compounding, particularly in durable, cash-generating businesses that return capital to shareholders. Republic Services Inc (NYSE: RSG), one of the largest providers of waste collection, recycling, and environmental services in the United States, offers a useful case study in long-term total return. Based on the period from July 24, 2006 through July 23, 2026, a $10,000 investment in RSG with dividends reinvested would have grown to $123,185.67.
RSG 20-Year Return Details
| Start date: | 07/24/2006 |
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| End date: | 07/23/2026 | ||||
| Start price/share: | $26.95 | ||||
| End price/share: | $217.42 | ||||
| Starting shares: | 371.06 | ||||
| Ending shares: | 566.22 | ||||
| Dividends reinvested/share: | $26.57 | ||||
| Total return: | 1,131.07% | ||||
| Average annual return: | 13.37% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $123,185.67 | ||||
The result is straightforward: over this 20-year span, RSG delivered a 1,131.07% total return, equivalent to an average annual return of 13.37%, assuming dividends were reinvested. In practical terms, every $10,000 invested in Republic Services in 2006 grew into more than $123,000 by July 23, 2026. These figures were computed using the Dividend Channel DRIP Returns Calculator.
What Drove Republic Services’ Total Return?
RSG’s long-run performance reflects two distinct sources of return:
- Share price appreciation: the stock rose from $26.95 to $217.42 over the measurement period.
- Dividend income and reinvestment: Republic Services paid a cumulative $26.57 per share in dividends, which, when reinvested, increased the original 371.06 shares to 566.22 shares.
That distinction matters. Price appreciation accounts for much of the gain, but reinvested dividends materially improved the final outcome by increasing the share count over time. This is one reason total return is a more complete performance measure than price return alone.
Why Republic Services Has Been a Strong Long-Term Compounder
Republic Services operates in a business with several characteristics that can support long-duration returns. Waste collection and disposal is a necessary service, demand tends to be relatively stable across economic cycles, and the industry benefits from local route density, long-lived assets, and regulatory barriers tied to landfills and environmental compliance. Those features can strengthen pricing power and support recurring cash flow.
For companies in this category, long-term shareholder returns often depend less on rapid revenue expansion and more on disciplined execution: steady pricing, efficient route operations, high asset utilization, cash generation, and a consistent capital allocation framework that balances acquisitions, dividends, and repurchases. RSG’s historical return profile is broadly consistent with that model.
Dividend Yield and Yield on Cost
Based on the most recent annualized dividend rate of $2.50 per share, RSG has a current yield of approximately 1.15% using the $217.42 end price in this analysis. That current yield is modest, but the longer-term perspective looks different when measured against the original purchase price.
Using the same $2.50 annualized dividend against the 2006 purchase price of $26.95 produces a yield on cost of 4.27%. Yield on cost does not indicate current market yield, but it can help illustrate how dividend growth enhances the income stream attached to a long-held position.
Key Takeaways From the RSG 20-Year Return
- A $10,000 investment in Republic Services in 2006 grew to $123,185.67 by July 23, 2026.
- Total return was 1,131.07%, with an average annual return of 13.37%.
- Dividend reinvestment increased the share count from 371.06 to 566.22 shares.
- RSG’s business model benefits from recurring demand, infrastructure assets, and industry barriers to entry.
- At the analyzed end price, the annualized dividend of $2.50 implies a current yield of about 1.15% and a yield on cost of 4.27% for a 2006 buyer.
Long-term return studies such as this one underscore a simple point: durable businesses that compound earnings and distribute cash over time can produce outsized results, even when the starting dividend yield is not especially high. In RSG’s case, the combination of business stability, price appreciation, and dividend reinvestment led to a notably strong 20-year total return outcome.
One additional investment quote to consider:
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” — Warren Buffett
