Two Splendid Stocks for Clever Investors

Now, listen closely. Most of the shares I fancy – the ones that reliably cough up dividends – are usually priced as if spun from pure gold. Preposterous, really. But even these sturdy fellows occasionally stumble, and when they do, a clever investor might just swoop in and snatch them up. These two, you see, have had a bit of a wobble, and that, my friends, is precisely the moment to pay attention.

They’d been rather boastful, outperforming the market for years, but then the market had a bit of a growth spurt in 2025. A bit rude, really. Now, after a small dip – 10% and 14%, to be precise – these two magnificent companies look rather tempting indeed, like plums just waiting to be picked.

WM: The Trash Titan

WM – formerly known as Waste Management, a rather sensible name if you ask me – isn’t just a company; it’s an empire built on…well, rubbish. They have 506 places where trash gets sorted, 105 recycling centers, 262 landfills (goodness!), and even 10 contraptions for turning garbage into gas. It’s quite ingenious, really. They collect your leftovers, sort through the mess, sell what they can, and even brew up fuel from the stink. A vertically integrated operation, they call it. Fancy words for a very tidy business.

This gives them a splendid moat – a barrier to keep pesky competitors at bay. Landfills are filling up, you see, and nobody wants one in their backyard. So, WM’s network of rubbish repositories is becoming increasingly precious. Like a hoard of gold, but smellier.

Loading widget...

Over the past two decades, this clever operation has delivered a return of 1,060% – a magnificent feat! Now, they’re expanding into medical waste (a rather unpleasant business, but profitable, I assure you), automating their recycling centers with whizzing, clanking machines, and building gas-brewing plants. This could send their cash flow soaring. They currently pay a dividend of 1.5%, and have been increasing it for 22 years, including a recent 15% bump. The dividend is safe, using only half of their profits. At 26 times earnings, it’s not exactly cheap, but a splendid opportunity to buy after its 10% slide.

Cintas: The Uniform King

Cintas, you see, is the number one provider of uniforms in North America. Over 12,000 delivery routes, delivering crisp, clean uniforms to all sorts of folks. They have two main tricks: uniform rental and facility services, as well as first aid and safety gizmos. The beauty of it is, they gobble up smaller companies – tiny, regional operators – and consolidate the market. They either buy them out or offer a better deal to their customers. It’s a bit like a friendly monster, slowly but surely taking over the world of workwear.

Loading widget...

Over the past decade, they’ve grown sales by 9% each year. And as they’ve streamlined their operations and boosted profits, they’ve nearly tripled the returns of the market. A ten-bagger, they call it. They’ve grown their dividend for 33 years, increasing it by 16% annually. At 40 times earnings, it’s as expensive as ever, even after its 14% drop. But their history of stomping the market and persistently strong sales growth make Cintas a buy for the long haul.

Read More

2026-01-17 18:35