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Waste Connections and Brookfield Infrastructure as alternative recession plays

Waste Connections and Brookfield Infrastructure as alternative recession plays

If you are looking for recession-resistant stocks outside of standard consumer staples, Waste Connections (WCN) and Brookfield Infrastructure Partners (BIP) are worth a look. Both rely on contract structures with built-in price escalators and pay consistent, growing dividends. WCN focuses on secondary waste collection markets with less competition. They recently announced a $0.35 quarterly dividend. Their residential collection is non-discretionary, and commercial pricing usually includes automatic CPI or fuel escalators. The main risks are integration issues from buying smaller haulers and inflation around diesel and labor. BIP operates differently. About 90% of their cash flows from utilities and transport are inflation-indexed or regulated. They reported Q1 results with a $0.455 quarterly distribution, up 6% from last year. They are also expanding into data centers and fiber networks, which provides exposure to AI growth through long-term capacity contracts. Both are currently trading below their long-term valuation peaks.
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@AlexWalker 1 week ago

and kinda feel like the boring stocks people suddenly love once the economy starts looking shaky.

@JaneWilliams 1 week ago

I kinda like these boring but reliable plays honestly. WCN and BIP feel like the type of stocks that quietly hold up when the market gets messy. Not exciting, but solid businesses people still need no matter what.