Can Waste Management Recession-Proof Your Portfolio?
Waste Management (NYSE: WM) has kept investors happy in recent years. The trash services provider's shares have climbed over 150% in the last five years and have quadrupled over the last 10, powered by a robust dividend and a strong market share – not to mention a historically strong bull market. But will the company be able to maintain this performance in a market downturn? Although recessions pose a challenge for all companies, Waste Management's industry, competitive positioning, and growing dividend positions the company to outperform the market during a recession.
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Historically, the trash service industry has been a stable and resilient. Two key reasons for this stability are the oligopoly characteristics of the trash services market and trash removal's positioning as a necessary service.
Source Fool.com
