Stock Entry Point Article​

Consider top recycling stocks as a hedge against volatility

Waste Management’s stock has risen by close to 30% since hitting a low on March 23rd, 2020. The S&P500, on the other hand, has risen by 49% during the same period. The pandemic has led to heightened volatility across industries and sectors. The repeated interventions by the Fed and the increasing debt have compelled investors to find safety in stable dividend-yielding stocks. Waste management is an essential service that is more or less recession-proof. Among the top waste management stocks to buy are Waste Management Inc and Republic Services Inc.

More population equals more trash

As the population grows, more trash is generated. With greater awareness about the environment and the increasing importance of ESG, the safe and sustainable recycling of that trash is a high priority. The pandemic has made people spend more time at home. It has resulted in more trash being generated in residential areas. Waste Management is one of the largest collectors and processors of trash in the world. The importance of waste management and recycling is clear from the fact that Waste Management’s revenues are down only 5% on a year-on-year basis.

An environmental service stock that pays dividends

Waste management, when done with a focus on sustainability, is an environmental service. It is exactly what Waste Management Inc is doing. It has invested heavily in technologies that can sustainably recycle hazardous waste. The company has also developed modern landfills and is committed to using renewable energy in its operations. Waste Management Inc also recycles and processes specific waste materials that can then be reused as feedstock by manufacturers and packaging companies. Reduce waste, recycle waste, and reuse waste seems to be the mantra of the company.

Currently, waste management trades at a 1.9% dividend yield. The company has increased its dividend payouts for 13 consecutive years as of 2020. It has a long and strong track record of rewarding shareholders with dividends.


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