The stock market has been pretty turbulent to start this year. That volatility has created a lot of uncertainty among investors. There are concerns that companies might not grow as rapidly as has been expected in the future, which could affect their ability to generate returns for investors.
However, some companies have very visible growth prospects that won’t change based on market turbulence. Williams(NYSE: WMB), Enbridge(NYSE: ENB), and WM(NYSE: WM) stand out to a few Fool.com contributors for the visible growth they have ahead. Here’s why they can grow no matter what happens in the stock market.
Matt DiLallo (Williams): Williams is a leading natural gas pipeline operator. Its pipelines and related natural gas infrastructure generate stable cash flow backed by long-term, fixed-rate contracts and government-regulated rate structures. Meanwhile, its earnings steadily rise as it expands its systems to capitalize on growing gas demand. As the following chart showcases, it has delivered steady growth over the past decade despite some significant swings in oil and gas prices:
Image source: Williams.
The company has a lot more growth coming down the pipeline. It currently has a long list of expansion projects under construction that should come online through the end of the decade. Projects include natural gas transmission pipeline expansions, additional natural gas gathering and processing capacity additions, and projects to support new deepwater developments in the Gulf. These projects help fuel Williams’ view that it can grow its earnings at a 5% to 7% annual rate over the long term.
Meanwhile, the company has many more projects under development to support surging demand for natural gas. It’s pursuing 30 additional natural gas pipeline transmission projects that could enter service through 2032. Williams also recently approved the first of what could be many power innovation projects to supply natural gas-fired electricity directly to a customer to support their growing energy needs. Securing additional expansion projects would further enhance and extend the company’s already solid long-term growth prospects.
Williams’ stable and growing cash flow enables it to pay an attractive and steadily increasing dividend. It currently yields 3.5%, more than double the S&P 500‘s 1.3% yield, and has grown its payout at a 5% compound annual rate since 2020. With plenty of earnings growth ahead, Williams’ high-yielding payout should continue heading higher.
Reuben Gregg Brewer (Enbridge): Operating in the capital-intensive midstream sector, Enbridge has seen growth that’s largely driven by the money it spends upgrading existing assets and building new assets. The assets it builds produce reliable cash flows from the fees charged for their use. So the key growth factor for Enbridge is its capital investment pipeline, which currently totals around $16 billion and lasts through 2029.
But just as important as the pipeline opportunity is Enbridge’s ability to pay for those investments. On that score, management estimates that it has annual capacity of around $6 billion to self-fund its investments. In other words, it should have little to no problem paying for its growth plans. In fact, it expects to have money left over for things like stock buybacks.
That said, it’s still digesting a large acquisition, so distributable cash flow growth has been on the low side for this reliable dividend stock. But management expects distributable cash flow growth to tick up into the mid-single digits by 2027, with dividend growth rising to around the same level.
The big draw for Enbridge is the lofty 6% or so dividend yield, backed by 30 consecutive annual dividend increases. But the prospects for higher distributable cash flow growth and, in turn, dividend growth make it an attractive income option if you’re worried about market volatility.
Neha Chamaria(Waste Management): Buying a defensive stock with visibility into growth is one of the smartest investing moves you can make during turbulent times. Waste Management, the U.S. leader in its sector, is one such stock you’d want to consider. While its business of collecting, managing, and recycling waste is immune to economic business cycles and generates steady and stable cash flows, Waste Management’s latest acquisition should drive growth.
Waste Management forayed into healthcare last year, when it acquired North America’s largest medical waste management company, Stericycle, for $7.2 billion. Since Waste Management used debt to fund the acquisition, it has temporarily suspended share repurchases and will use incremental cash flows to repay debt instead. It’s a prudent move and reflects management’s commitment to dividends while strengthening its balance sheet.
Waste Management expects its revenue to grow by 16.4% in 2025 at the midpoint of its guidance range, with nearly 11% growth coming from acquisitions. It expects its free cash flow (FCF) to grow by almost 18% this year. Meanwhile, Waste Management recently announced a 10% annual dividend raise for 2025, marking its 22nd consecutive year of dividend increases. Given its steady dividend growth and the Stericycle acquisition, Waste Management looks like a monster stock to buy and hold through turbulent times.
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Matt DiLallo has positions in Enbridge and Waste Management. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Waste Management. The Motley Fool has a disclosure policy.
