In the video below, Fool analysts Blake Bos and Austin Smith take a look at a few opportunities for investors in Waste Management (NYSE:WM).
The nature of the company's business is one of its biggest attractions. People need to throw stuff away, and that won't change. That gives Waste Management a very stable cash flow and a dependable dividend.
Additionally, there are high barriers of entry to the landfill business. Permits are difficult to secure and the operations themselves are hard to build.
Waste Management operates some 300 landfills and maintains an absolutely dominant market position. Its stable cash flow also gives it the ability to upgrade its operations. The company has recently partnered with Westport Innovations to convert much of its fleet to run on natural gas, a move that will provide a big cost savings over the long run.
Austin Smith owns shares of Waste Management. Blake Bos has no positions in the stocks mentioned above. The Motley Fool owns shares of Waste Management and Westport Innovations. Motley Fool newsletter services recommend Waste Management and Westport Innovations. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.