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.

Fool contributor Tamara Rutter does not own any stocks mentioned in this video. Follow her on Twitter using the handle @TamaraRutter for weekly stock picks and other Foolish insights. The Motley Fool owns shares of Waste Management. Motley Fool newsletter services have recommended buying shares of Waste Management and Republic Services, as well as writing a covered strangle position in Waste Management. The Motley Fool has a disclosure policy.

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