In today's video, I look at Waste Management and explain why I'm giving the stock a outperform rating on my profile in Motley Fool CAPS. Waste Management is the largest trash and environmental services business in the U.S. Even in a down economy, garbage needs to be disposed of, which gives Waste Management an edge over businesses in other industries. Additionally, the company's waste-to-energy operations create enough renewable energy each year to power more than 1 million homes.  

Investors craving strong returns will find no shortage of reasons to love Waste Management. The company pays an annual dividend of $1.42 per share and boasts an impressive dividend yield of 4.3%, which is a full percentage point above its closest competitor, Republic Services. Also, even under tough economic conditions, both Waste Management and Republic Services were able to grow their dividends.