These 4 Waste and Services Stocks Collect Recurring Revenue

Waste Management (NYSE: WM), Republic Services (NYSE: RSG), Waste Connections (NYSE: WCN), and Cintas (NASDAQ: CTAS) have something important in common: They generate recurring revenue by providing services their customers need. Whether it's collecting garbage or supplying workplace uniforms, these companies benefit from dependable demand and recurring customer relationships. That combination can produce resilient cash flows, support steady earnings growth, and help fund rising dividends.

Here's a closer look at how these four industrial service stocks generate recurring revenue and why they could be attractive long-term investments.

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Waste Management: Turning trash collection into steady cash flow

WM is the leading provider of environmental solutions in North America. At over $25 billion in annual revenue, it controls a commanding 19% of the fragmented market. The company provides collection, disposal, and recycling services, healthcare solutions (regulated waste and compliance services as well as secure information destruction). It also has a landfill gas-to-energy business. The company has unmatched size and scale with 253 active solid waste landfills, 17 medical waste incinerators, 99 secure information destruction facilities, 113 recycling facilities, and 103 landfill gas-to-energy facilities.

These businesses are recession-resilient, with 75% of WM's revenue having annuity-like characteristics. The company's revenue has grown at an 11% compound annual rate over the last three years, driven by organic growth, sustainability investments, and acquisitions. It also produces strong, growing free cash flow ($3 billion during the first nine months of this year). WM uses its cash to fund growth investments (sustainability investments and acquisitions). It also rewards shareholders through a steadily rising dividend (23 consecutive years and 8.7% compound annual growth over the past decade) and meaningful share repurchases (a 12.4% reduction in outstanding shares over the past decade).

Republic Services and Waste Connections: More ways to profit from recurring waste collection

Republic Services and Waste Connections are the next two largest players in the North American waste and recycling market. The No. 2 player, Republic Services, focuses on recycling, waste management, environmental solutions, and sustainability innovation. Meanwhile, Waste Connections is the third-largest player and focuses mainly on solid waste.

Republic Services estimates that 80% of its revenue has an annuity-type profile. The company uses its revenue to invest in its growth (acquisitions and sustainability innovation). It has made $1.1 billion in acquisitions this year and has recently begun construction of a state-of-the-art recycling center to serve St. Louis. Meanwhile, it steadily returns excess cash to shareholders. Like WM, it has increased its dividend for 23 straight years. It also repurchases shares (its board recently approved a $5 billion share repurchase authorization).

Waste Connections focuses on exclusive and secondary markets where it faces less competition. It steadily buys smaller solid waste services companies (over 100 acquisitions during the last five years), helping drive additional growth. The company also returns excess cash to shareholders. It delivered its 16th consecutive double-digit dividend increase in 2026 and has already repurchased 2.5% of its outstanding shares this year.

Cintas: Essential workplace services generate repeat business

Cintas brings the same recurring service business model to a different industry. It helps customers get ready for their workday by providing essential workplace items, including uniforms, mats, restroom supplies, first-aid products, and fire-safety services. It provides many of these items through recurring rental and service programs, creating ongoing customer relationships.

The company generated $3 billion of revenue during its fiscal 2027 first quarter, up 10.9% year-over-year. It produces strong free cash flow, which allows it to pay a growing dividend (for 43 consecutive years) and repurchase shares. The company also has the financial flexibility to make acquisitions. It agreed to buy UniFirst for $5.5 billion in 2026, a move that will enhance its capabilities and boost its earnings per share by the end of the second year.

Steadily collecting cash

Recurring revenue is a valuable characteristic for long-term investors because it can make a company's sales and cash flows more predictable. Waste Management, Republic Services, and Waste Connections benefit from the ongoing need to manage waste, while Cintas serves businesses through recurring workplace service relationships. All four have demonstrated the ability to translate those relationships into profitable growth. They're ideal investments for those seeking less-volatile options that can deliver steadily rising dividends.

Matt DiLallo has positions in WM and Waste Connections. The Motley Fool has positions in and recommends Waste Connections. The Motley Fool recommends Cintas and WM. The Motley Fool has a disclosure policy.