Waste Management (WM - Get Report) runs over 300 landfills nationwide, making it the industry's dominant player at a time when the number of domestic landfills is shrinking due to strict environmental regulations.
Church said "trash collection is a great non-cyclical business" and so avoids sharp downturns while providing steady cash flow. He expects the company will soon raise its dividend to 5% from its current 4.31% yield.Church adds that the company has another potential for growth beyond its core business as it is working to convert trash to energy, and monetize other waste products it collects through recycling. Its shares are down 11% this year, but over the past three years have an average annual return of 6%, resulting in a market value of $14 billion.
Alere (ALR - Get Report) develops and markets consumer and professional point-of-care diagnostic devices. The firm's devices target cardiology, oncology, drug abuse and women's health-care sectors. Church says "we think this is where the future of health care is migrating to -- the use of a monitoring device from home. It's keeping people out of hospitals or the doctor's office" through the use of wireless communications on medical monitoring devices. Just as everything else is going mobile, this is mobile health care." Alere's shares have lost 37% this year, but have a three-year average annual return of 12%, resulting in a market value of $2 billion.