For dividend investors, essential services can be a gold mine of steady payments. No matter what the economy is doing, we need these basic services to function as a society. And one of the most “must-haves” is sanitation services. Trash collection and storage isn’t glamorous, but it is necessary. And for our Best Dividend Stocks List pick in the sector, it’s also a source of major growth.
As one of the largest trash-hauling operators in the nation, our pick offers plenty of scale to make the most of the low-margin industry. Better still, as one of the largest owners of landfills and recycling centers, our pick actually benefits from its rivals, who pay a fee to use its facilities. This has made our pick a strong dividend stock throughout its history.
But there is also growth on the horizon, and it starts with the letters ESG.
Environmental, social and governance (ESG) standards are becoming more than just a buzz word at many corporations. As one of the largest environmental services firms in the nation, our pick has the potential to help many firms meet their ESG needs. From simple waste reduction/recycling efforts to more advanced disposal and reduction methods, our pick has the potential to be a winner from the ESG movement.
Add in its history of M&A, as well as the continued growing U.S. economy – which produces more high-margined commercial waste, and our pick is poised to keep the profits and dividends growing.
To summarize, here are five reasons why you should own this stock:
- One of the largest environmental services firms in North America with over $4 billion in revenues last quarter.
- Big winner from growing ESG movement as firms look to reduce their environmental footprints.
- Increased its dividend for more than 15 years.
- Big winner in the current economic re-opening and continued work-from-home environment.
- Healthy payout ratio of 46% and growing yield of 1.45%.
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