Safe: Waste Management
Face it: In good times or bad, garbage is big business, and Waste Management (NYSE:WM) is going the extra mile to deliver for shareholders. Last week, the company reported first-quarter earnings that missed analysts’ EPS estimates by a penny, but restructuring charges were part of that miss.
The company’s restructuring efforts — combined with cost efficiencies and rate hikes where contracts allow — will position Waste Management for future gains, particularly if the churn rate continues to trend lower. The company’s recycling business, as well as its waste-to-energy initiatives, could provide the company with longer-term growth opportunities.
WM’s 16.9 forward P/E and 2.48 PEG are frothy, and like AEP, it’s also trading at all-time highs. But again, WM is a reliable dividend payer, and its yield is an attractive 3.6%.