1 No-Brainer Dividend Stock to Buy Now and Hold Forever

If you’re searching for a reliable stock that delivers consistent returns and growing dividends, Waste Connections might be worth holding forever.

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Key Points

  • Waste Connections (TSX:WCN) offers stability with reliable dividends and strong growth.
  • In the latest quarter, the company reported a 5% revenue increase and a solid 33.8% EBITDA margin.
  • Strategic acquisitions and rising dividends make WCN stock an attractive long-term investment.

While it’s not easy for investors to completely ignore market noise, some fundamentally strong stocks make that easier with consistent performance, reliable dividend income, and long-term growth potential. After including such robust stocks in your portfolio, you don’t need to keep checking the stock chart every morning. And there’s one stock I’ve been watching closely of late that fits this description perfectly. It might not make big headlines, but it keeps doing what it does best.

In this article, I’ll highlight why Waste Connections (TSX:WCN) could be one of the smartest stocks to buy now and hold forever.

A solid dividend stock in a surprisingly resilient industry

While Waste Connections may not be a very popular name for most investors, it runs a critical business that rarely slows down. As one of the largest integrated waste services companies in North America, it serves millions of residential, commercial, and industrial customers across 46 U.S. states and six Canadian provinces. That large reach, combined with its focus on non-hazardous waste collection and recycling, keeps its revenue stream stable through most economic cycles.

Notably, WCN stock has climbed over 476% in the past decade, making it one of the stronger long-term compounders in its sector. As a result, it currently trades at $243.24 per share, giving it a market cap of $62.5 billion. It also offers a small but reliable annualized dividend yield of 0.8%, paid out quarterly. While its yield is low, what makes it appealing is the company’s history of raising its dividend.

Solid growth, quarter after quarter

In the third quarter of 2025, Waste Connections posted a 5% YoY (year-over-year) rise in its total revenue to US$2.46 billion, which was slightly ahead of expectations. But what really stood out was its solid adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 33.8%, reflecting healthy cost control and pricing power even with some commodity headwinds.

With this, the company’s adjusted earnings rose 7% YoY and 12% sequentially to US$1.44 per share with the help of stronger operating execution and lower turnover rates. In the latest quarter, Waste Connections also achieved a record low in safety incident rates. Meanwhile, its free cash flow also improved, helping the company fund both its dividend hike and share buybacks.

Why it’s a no-brainer stock for the long term

One of the main reasons that makes Waste Connections such a compelling stock for long-term investors is its consistent return of capital. In the latest quarter, it increased its quarterly dividend by over 11% and repurchased about 1% of its outstanding shares. These moves clearly reflected confidence in its balance sheet and cash flow outlook.

In terms of growth strategy, the company is continuing to target smaller acquisitions. It has added roughly US$300 million in annualized revenue from deals already closed or under agreement this year. In addition, its strong focus on recurring revenue, high customer retention, and ongoing investments in infrastructure make it even more attractive.

With its solid financial performance and growth strategy, Waste Connections could bring predictability to your portfolio. This is a business that doesn’t need booming economic conditions to grow. That’s why it just keeps delivering through earnings growth, operational efficiency, or dividend increases.

Fool contributor Jitendra Parashar has positions in Waste Connections. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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