Waste Connections (WCN) and Brookfield Infrastructure Partners (BIP) are emerging as standout “recession-resistant” stocks, often overlooked in favor of traditional consumer staples and utilities. Waste Connections, the third-largest solid waste company in North America, boasts a resilient cash flow profile driven by non-discretionary residential collection and long-term contracts with built-in price escalators. The company has consistently increased its quarterly dividend, reflecting a strong growth trajectory. Meanwhile, Brookfield Infrastructure offers a diversified portfolio of contracted global assets, with 90% of cash flows linked to inflation or regulatory frameworks, ensuring revenue stability across economic cycles.
These companies not only provide reliable dividends but also trade below their historical valuation peaks, making them attractive for income-focused investors. Their operational structures and growth strategies suggest they can weather economic downturns effectively. For professionals looking to build a recession-proof portfolio, both Waste Connections and Brookfield Infrastructure present compelling opportunities with reasonable entry points before broader market recognition.
Source: fool.com