Waste Management, Inc. (WM): Is The Future of Green Energy in Garbage?

The bottom line

Landfill gas can be utilized as a power source, and it is apparently better for the environment than its fossil fuel counterparts. Companies such as Exelon are taking advantage, and others are as well, such as Duke Energy Corp (NYSE:DUK).

The real question, however, is where to invest? Waste Management is at the forefront of this technology, and gets paid not only by selling the landfill gas, but by also collecting the garbage and waste that fills the landfills that create the gas they are selling. That sounds like a great business that will be able to generate profits even in hideous economic times that is worthy of your consideration for investment.

Sure, the trash business may not traditionally provide much growth, but with a dividend at almost 4% in a yield-starved environment, there is income being generated. Not only that, but the company has seemingly found a new potential outlet for growth in power generation that arises from what used to be a cost. They are turning garbage into gold. That’s also one of the reasons I’m bullish on Waste Management and plan to open a position on any future pullback.

The article Is The Future of Green Energy in Garbage? originally appeared on Fool.com and is written by Joseph Harry.

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