Look for a Canadian stock that sells something people can’t afford to miss, works with repeat customers, and grows cash flow without constant reinvention. The best ones also raise dividends from real profits, keep debt sensible, and protect a moat that you can lay out at the kitchen table. That’s why today we’re looking at one specific market: waste.
WCN
Waste connections (TSX:WCN) meets this essential and repeatable test because it operates an integrated solid waste business. It collects, transports and disposes of non-hazardous waste, and also earns revenue from recycling and renewable fuel generation. It even has a smaller share of non-hazardous oilfield waste services and intermodal freight and waste container transportation. The work doesn’t sound glamorous, but it’s at the heart of modern life, making demand remarkably persistent.
Over the past year, Canadian stocks have seemed calm rather than dramatic. At the time of writing, shares are down 4% in the past year and up 2% in the past month. That pace won’t beat every sector as investors chase momentum, but it can help you stick to a plan when markets get choppy. For passive income investors, temperament matters because panic selling can erase years of careful construction faster than any mediocre quarter ever could.
In income
That stability also reflects how Canadian stocks compete. Waste Connections focuses on many exclusive and secondary markets in 46 U.S. states and six Canadian provinces, and that footprint gives it local scale where it operates. It wins with logistics, contracts and consistency, not flashy product cycles. Many dividend stocks promise safety, but their underlying businesses still depend on commodity prices, regulation or consumer tastes. Trash doesn’t care about fashion trends, and that simple fact supports recurring revenue.
The latest earnings report shows why investors keep coming back to it. In the third quarter of 2025, Waste Connections grew revenue to $2.5 billion and increased adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to $830.3 million. Adjusted earnings per share also grew to $1.44 from $1.35 a year earlier. Prices did the heavy lifting, with core price growth reaching 6.3% in the quarter, even as volumes weakened. In short, it protected profitability without the need for perfect economic weather.
Looking ahead
Now for the trade-off. Waste Connections trades at 70 times earnings at the time of writing, 22 times forward earnings and 5.6 times book value. You’re paying for the consistency, and that premium can sting if you want quick wins. The dividend yield also seems small, roughly around 0.5%, so it won’t fund a pension check on day one. This Canadian stock aims to grow earnings over time, not deliver big returns today.
So why call it a buy-and-hold forever name for passive income? Because it combines sustainability with dividend growth and disciplined reinvestment. Management increased the quarterly dividend by 11.1% in October 2025, bringing it to $0.35 per share. That boosts things more than the current yield because it indicates that cash flow supports higher payouts as Canadian stocks continue to upgrade routes and assets. Add to that incremental pricing power and add-on acquisitions, and you get a company that can grow steadily through good and bad markets.
In short
You still need to question the statement before you commit, because forever doesn’t mean you’re risk-free. A premium valuation may limit short-term upside, volumes may slump in a slowdown, and acquisition-heavy growth requires common sense and good integration. If you need the highest returns right now, you’ll find flashier dividend names. But if you want a Canadian stock that can quietly turn a profit, increase its payout, and continue to do so while you focus on life, Waste Connections could earn a spot in a long-term TFSA.
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