The pandemic has truly upended how we function in a major way. Our home, work and social lives have been completely changed by the COVID-19 pandemic. And in that, the investing world has been changed as well. For portfolios, the key is finding stocks that are adapting to the new environment and can continue operating successfully into the future. Luckily, our environmental services Best Dividend Stocks List pick does just that.
As one of the largest trash haulers in the nation, our pick has been able to navigate the pandemic relatively unscathed. With a huge operating footprint across both public and private industries, commercial and residential clients, our pick’s revenues remained steady. While commercial sources are down, stay-at-home orders have boosted demand in residential neighborhoods. This balance has kept the firm’s revenues at a steady pace.
Meanwhile, aggressive cost cutting, investments in technology and continued price improvements have boosted margins significantly. So much so that our pick managed to pull in $1 billion in net cash from its operating activities last reported quarter. The best part is that these cost-cutting initiatives, margin amplification and tech upgrades will stick around long after the coronavirus is contained. This will only boost profits further into the future.
This should lead to continued dividend growth down the line.
And speaking of growth, our pick has plenty of avenues to keep moving the needle. Bolt-on acquisitions and M&A offer plenty of opportunities to add capacity and increase revenues. At the same time, applying its cost-cutting measures to these M&A opportunities will lead to higher profits. Add in our pick’s focus on green/recycling efforts – and you have a recipe for a great long-term investment.
The bottom line, our pick has the goods for the here and now as well as in the future.
To summarize, here are five reasons why you should own this stock:
- The largest environmental services firm in north America with nearly $15 billion in annual revenues.
- Thanks to cost cutting, our pick realized more than $1 billion in net cash from its operating activities.
- Increased its dividend for 15+ years straight years.
- Acquisitions and M&A activity have continued to fuel bolt-on growth, while higher-margined recycling assets are also adding a healthy boost.
- Healthy payout ratio of 45% and growing yield of 1.86%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.
