LKQ Corporation (LKQ), Newalta Corporation (NAL), Waste Management, Inc. (WM): Three Companies Turning Scraps Into Wealth

The ability to pull out valuable commodities from waste positions the company for growth as its customers try to do more with less. This is particularly true as oil and natural gas drilling increases in North America. However, the company deals with many other products, too, like lead batteries. If you are looking for a recycler with a solid niche, Newalta Corporation (TSE:NAL) is a good pick.

Old Dog, New Tricks

Waste Management, Inc. (NYSE:WM)’s trash hauling trucks can be seen throughout The United States. At one point in its history, the company focused on collecting garbage and dumping it into landfills. That, however, has changed.

Today, the company is repositioning around recycling. Yes, that means taking cans and bottles from outside of peoples’ homes. However, it is doing more than just that. For example, many cities now allow residents to throw all of their recyclables into one big bin instead of having to separate them out into individual piles. That’s possible because companies like Waste Management, Inc. (NYSE:WM) have invested in the facilities to handle co-mingled recyclables.

That isn’t the only place where the company is innovating. The company has more than 130 landfill to gas operations. While there is always going to be trash that gets dumped in a landfill, Waste Management, Inc. (NYSE:WM) is turning that pile of rubbish into an energy source. In fact, a plant in California that converts landfill gas to liquefied natural gas powers 300 of its trucks.

This is the most direct play on “typical” recycling, but management is working hard to take the company to the next level. Income investors might find the company’s near 4% dividend yield attractive, too.

Working Smarter

These three innovative companies are working smarter to get more out of recycling. The are hidden leaders in a world that is moving more and more toward environmental stewardship. That sets them up for long-term growth.

The article 3 Companies Turning Scraps Into Wealth originally appeared on Fool.com and is written by Reuben Brewer.

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