It’s been a wild couple of weeks in the U.S. stock market. After falling heavily last week, the three major indices — the S&P 500, Nasdaq, and Dow Jones Industrial Average — are all left nearly unchanged.
While it’s true that volatile markets present opportunities to buy good companies at a discount, they can also be emotionally taxing. A simple, hands-off approach for navigating volatility is to invest in dividend stocks. Waste Management (NYSE:WM), ABB (NYSE:ABB), and Watsco (NYSE:WSO) are three businesses with track records for generating strong results and raising their dividends even in uncertain times. Here’s what makes each a great buy now.
Image source: Getty Images.
As even-keeled as they come
Daniel Foelber (Waste Management): Share prices of Waste Management are hovering around an all-time high. Deservingly so, as the company continues to grow its top line, maintain strong profitability, and generate a lot of free cash flow (FCF).
WM Revenue (Quarterly) data by YCharts
Waste Management’s business consists of the collection, transportation, processing, and disposal or reuse of trash and recycled products. The company benefits from a rising population that consumes and wastes more stuff. But it also has an environmental, social, and governance (ESG) side to it as well. Not only is Waste Management a leader in recycling, but its landfills offer a way for it to compete in the growing field of renewable natural gas (RNG).
The decomposition of organic material in landfills, wastewater, dairy manure, and waste from the agricultural industry emits a lot of methane. Capturing and reusing that methane is a way to produce an alternative fuel that is more environmentally friendly than fossil fuels like diesel and natural gas. Waste Management has yet to monetize RNG in a meaningful way, but it’s an industry that presents a long-term growth opportunity.
Waste Management’s dividend yield is just 1.4%. But that’s mainly due to its stock’s impressive multi-year performance. For what it can control, Waste Management has done a great job raising its dividend. 2021 marks the 18th consecutive year it has increased its annual payout. For investors looking for an industry leader whose business can thrive no matter what the economy or the market is doing, there are few better options than Waste Management.
^SPX data by YCharts
Growth, value, and dividends all in one stock
Lee Samaha (ABB): The European industrial giant ABB often gets overlooked due to a history of poor performance. But under CEO Bjorn Rosengren, there are real signs of change.
The company has long held …….
Source: https://www.fool.com/investing/2021/12/09/3-ways-to-earn-income-while-the-market-swings-up-a/
