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Talking Trash – 3 Waste Management Stocks to Buy Now

These secular landfill kings deliver stability and even some income

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Waste Management Stocks to Buy Now – Waste Management (WM)

Waste Management WM stockOperating Margins: 15.2%
Current Dividend Yield: 3.4%

Waste Management (WM) is the 800-pound gorilla among waste management stocks, with more than 20 million customers in the U.S. and Canada. WM also boasts the nation’s largest network of recycling facilities, transfer stations and landfills to business and residential customers.

But WM’s value proposition is not all about trash removal: It also plays in the renewable energy space by recovering the gas that is emitted from landfills and turning it into electricity. By the end of 2012, WM had 138 active landfill gas projects that generated enough electricity to power nearly 500,000 homes.

And Waste Management is building on its renewable energy plans. Earlier this year, WM formed a joint venture with Ventech Engineers International LLC, NRG Energy (NRG) and Velocys plc (OXFCF) to produce renewable fuels and chemicals from biogas and natural gas using smaller-scale gas-to-liquids technology.

There’s a lot to like about WM stock — the company has a strong track record of boosting shareholder value through share repurchases and steady (albeit not massive) dividend increases. While it’s a bit overvalued based on forward price-to-earnings and price/earnings-to-growth (17 and 2.9, respectively), Waste Management is a good, stable, buy-and-hold stock with  growth opportunities in the energy space.

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Article printed from InvestorPlace Media,

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