RSGRepublic Services, Inc.

Republic Services hauls waste and owns landfills — the industry's second player with the same economics as the first.

The real asset is landfills: permitting a new one is nearly impossible and existing ones have finite capacity. The owner dictates terms to everyone hauling waste in the area, competitors included — hence durable pricing independent of the economy.

Contracts with municipalities and businesses are usually inflation-indexed, so higher fuel and labour costs pass to the customer with a lag. Volumes track the cycle weakly: waste is produced in downturns too, though construction and industrial streams shrink.

The growth line is environmental services for industry: hazardous waste handling, where requirements are stricter and competitors fewer. The company pays a dividend with a long record of increases and buys back stock consistently.