Waste Connections, Inc. (NYSE:WCN) has been able to maintain double digit growth as compared to its bigger competitor: Waste Management. As a result, the stock has gained about 16% over the past six months. Environmental services companies have been doing well despite slowing growth in the industry, and the results have translated into an increase in stock prices. Almost all of the companies in the sector have strong pricing power, which allows them to extract more revenue from customers. Waste Connections, Inc. (NYSE:WCN) have especially been successful in maintaining its pricing strength in its market – the markets have less pressure, which allows the company to maintain its pricing strength. The company is expanding its operational base, which should allow for margin expansion.
Waste Management, Inc. (NYSE:WM) is a safe long-term investment, since the company’s pricing power gives it a fair chance at growth. The company’s commitment towards consistent payment and improvement in dividends ensures consistent income for shareholders. Growth for Waste Management, Inc. (NYSE:WM) might remain depressed in the short term; however, the safety of dividends and steady long-term growth makes it an ideal pick for income investors.
The article Waste Management Is An Ideal Pick For Income Investors originally appeared on Fool.com and is written by Ishtiaq Ahmed.
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