Weekly "Focus" and Cardboard Crazy

Ever since the pandemic, we have been ordering more and more items for home delivery causing our garage to get filled up with cardboard boxes that I have to eventually break down to fit into our bin. For example, rather than fighting the crowds at Costco*, we now order in paper goods that come in massive cardboard boxes. Our waste collection services are now operated by a private business, which Toronto hired as a result of the four-week garbage strike we had to endure 15 years ago. Historically, waste collection businesses have been “solid” performers in the stock market as they operate with good margins under long-term contracts. Devin Dodge is the BMO Capital Markets analyst covering the environmental services sector and here’s a summary how the stocks in the group have performed so far this year.

 

		Total Return in 2024		Dividend Yield
Clean Harbors* (CLH)		+14.9%		0.0%
Enviri* (NVRI)		-1.7%		0.0%
GFL Environmental * (GFL)		+3.6%		0.1%
Republic Services* (RSG)		+16.1%		1.1%
Waste Connections* (WCN)		+18.0%		0.7%
Waste Management* (WM)		+19.9%		1.4%

Source: FactSet

 

This week’s "Focus" from our economics team is attached.

 

Finally, our offices will be closed tomorrow for Good Friday and I would like to wish everyone who celebrates a Happy Easter.

 

Have a great long weekend,

 

Brad

Senior Portfolio Manager and Senior Investment Advisor