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Friday's Exclusive Content Trash to Treasure: 3 Waste Removal Stocks to Minimize VolatilityWritten by Dan Schmidt. Article Posted: 3/22/2026. 
Key Points - Waste removal stocks often perform well in volatile times due to inelastic demand for services and long-term contract agreements.
- While the industry is highly-concentraded, the incumbents have unique advantages due to regulatory compliance hurdles.
- Waste Management, Republic Services, and Clean Harbors are three waste removal companies with upside in the current market environment.
- Special Report: Elon's "Hidden" Company
If you hate taking out the trash, welcome to an exclusive club called Everyone. Trash removal is always a consideration when renting or buying a new home because we all produce it and need it picked up in one form or another. And because demand for trash removal is largely inelastic, the companies that provide these services typically generate steady, if unspectacular, revenue. The waste removal industry also has a few advantages that differentiate it from typical consumer staples companies: - Regulatory and environmental burden - Removing household trash is simple, but handling waste for businesses and governments is a different proposition. The waste disposal industry is highly regulated, with strict standards and high barriers to entry. Opening a new landfill is a multi-year process, so incumbents operate in an oligopoly and enjoy significant pricing power.
- Long-term revenue streams - Waste removal firms typically operate under multi-year contracts that lock in consistent revenue and make the business more resilient during economic slowdowns. Contracts are commonly one to three years, while larger businesses and municipalities often sign five- to seven-year agreements. Contracts may be flat- or variable-rate and frequently include stipulations for regulatory fees and fuel surcharges (which matter more as oil prices rise).
This combination of essential demand and regulatory barriers often makes waste companies a solid defensive investment. Historically, waste management firms have held up well during market downturns and periods of volatility. With the Iran conflict ongoing and the S&P 500 hovering near its 200-day moving average, market swings are likely to continue — making these waste-service companies interesting options for investors right now. 3 Steady Waste Removal Stocks With Upside Gold prices are surging, but there may be a more compelling way to play the rally. A little-known asset called 'Canadian Gold' has outpaced physical gold, silver, the NASDAQ, and the S-P 500 since its inception. Research shows that 'the Warren Buffett of Canada' and a close associate of Warren Buffett himself are both quietly accumulating positions in this overlooked alternative. Click here to discover why Canadian Gold is drawing serious investor attention The industry's oligopoly means only a handful of waste removal companies trade publicly on U.S. exchanges, limiting investment choices. With that in mind, here are three companies that offer an attractive mix of upside potential, consistency, and dividend income while helping limit exposure to fluctuating fuel costs. Waste Management: The Cash-Flow King Waste Management Inc. (NYSE: WM) is the largest waste removal company in the U.S., both by market cap ($94 billion) and by number of landfills, transfer stations, and recycling facilities. It's also a very shareholder-friendly company, and that trend looks set to continue after reporting strong free cash flow of $2.94 billion in Q4 2025. Management expects free cash flow to increase more than 30% in 2026, and the company is supporting that growth with a 14.5% dividend increase and $3 billion in share buybacks. The company also mitigates fuel-cost volatility — including risks tied to the Strait of Hormuz — through energy surcharges that pass diesel and compressed natural gas (CNG) price increases through to clients.  WM shares show the makings of a durable technical uptrend, with a bullish Golden Cross and solid support at the 50-day moving average. A move into overbought territory on the Relative Strength Index (RSI) triggered a brief pullback, but the share price is once again near the 50-day support level — a potential entry point for new buyers. The dividend yields about 1.62%, with a 56% dividend payout ratio and a 22-year history of increases. Republic Services: Low Leverage and Dividend Resilience Republic Services Inc. (NYSE: RSG) often plays second fiddle to WM due to its smaller market cap, lower yield and fewer locations. But RSG has strengths WM does not: an earnings beat in Q4 2025 and a cleaner balance sheet. RSG carries less debt and has been less active on the M&A front, which can mean slower growth but also lower leverage and financial flexibility. Its dividend yield is lower at 1.13%, but the dividend payout ratio is a healthy 36%, leaving room for future increases. Like WM, RSG uses a fuel surcharge model that helps blunt the impact of rising oil prices.  RSG shares have lagged WM so far in 2026, and the technicals show more conflict between buyers and sellers on the daily chart. If volatility persists, however, RSG could continue the breakout that began last November. The stock appears to have found support at the 50-day moving average, and the RSI has returned to levels that previously marked short-term lows. A sustained move above the 200-day moving average could be the next catalyst. Clean Harbors: Upside From Government Work Clean Harbors Inc. (NYSE: CLH) isn't a traditional collection-and-disposal operator like RSG or WM, but it offers meaningful upside potential. More than 75% of the company's revenue comes from Environmental Services, a more cyclical business than Collection and Disposal. Still, Clean Harbors benefits from very reliable customers — most notably the U.S. government. The company has a multi-year agreement with the Department of Defense for polyfluoroalkyl substances (PFAS) filtration services, with options to expand annually. PFAS are persistent "forever chemicals" that may contaminate water at more than 700 military bases. Clean Harbors is reportedly the only company capable of handling all three phases of PFAS filtration, remediation and incineration, which gives it a meaningful moat for those services and an advantage when competing for additional government contracts.  Investors tend to favor companies with steady government contracts, and CLH shares have risen more than 20% year to date. The stock is in a strong uptrend, trading above both the 50-day and 200-day moving averages, and the RSI has cooled from overbought levels. With the DoD now engaged amid what appears to be a prolonged Iran conflict, defense budgets may rise beyond the requests made earlier this year, which could translate into additional revenue for Clean Harbors. |
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