Key Points

Waste Connections pairs essential service needs with robust pricing strength to support consistent dividend increases even in weak economies.
Brookfield Infrastructure Partners delivers stability via inflation-linked agreements spanning utilities transport and expanding data assets fueled by AI demand.
Together these firms illustrate that reliable income opportunities extend well beyond traditional staples and utility names.

Common headlines tout recession-resistant equities as limited to consumer staples or utilities. This view misses two durable cash flow engines available in public markets: solid waste services and contracted global infrastructure.

Both sectors generate revenue from volumes plus built-in price adjustments that persist through cycles while supporting rising payouts. Neither name draws widespread retail attention which helps explain their still-reasonable valuations.

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A waste services firm with software-style economics

Waste Connections (NYSE: WCN) ranks as the third-largest solid waste operator across North America yet operates more like a specialized services compounder than a basic hauler. Its model centers on secondary and exclusive markets where smaller cities and municipal contracts provide lasting pricing power and limited rivals.

In February 2026 the firm declared its standard quarterly cash dividend of $0.35 per share while the board reaffirmed its goal of annual dividend growth. The current yield remains modest but the multi-year compound growth rate has stayed in double digits.

Contract design underpins true recession resistance. Residential routes represent non-discretionary spending commercial rates often embed automatic escalators linked to CPI or fuel costs and landfill scarcity in key regions bolsters pricing. Recycling and energy offerings add diversity without undermining core stability.

Operational and deal-related risks deserve attention. Growth relies partly on acquiring smaller operators so larger transactions bring integration challenges. Diesel and labor cost pressures can outpace escalators in certain periods creating temporary margin strain. Overall the equity offers dependable income and defensive characteristics suitable for cautious markets.

A diversified infrastructure cash flow engine

Brookfield Infrastructure Partners (NYSE: BIP) follows a distinct path to resilience. The partnership holds long-duration contracted or regulated assets in utilities transport midstream and data infrastructure across four continents. Approximately 90 percent of cash flows carry inflation indexing or regulatory oversight so revenue expansion continues regardless of broader economic swings.

In April 2026 Brookfield Infrastructure posted first-quarter results and approved a quarterly distribution of $0.455 per unit marking a 6 percent rise from the prior year. Newer investors should note the unit and corporate share classes deliver identical economics with differing tax treatment that provides flexibility across account types.

Data infrastructure represents an emerging growth vector. Brookfield has expanded holdings in data centers fiber networks and towers positioning the defensive cash flow base as an indirect route to AI infrastructure spending. Long-term capacity agreements with hyperscalers mirror regulated utility economics through fixed payments extended durations and inflation escalators.

Why current valuations remain compelling

Both equities trade below historical peak multiples while distributions continue to expand. Waste Connections conducts annual dividend reviews each October with an explicit growth mandate and Brookfield has sustained a pattern of yearly increases highlighted by the recent 6 percent hike. Income investors seeking holdings that endure genuine slowdowns will find these steady growth signals more relevant than headline yields alone.

Recession resistance need not imply dull or overpriced assets. Waste Connections generates software-like predictability from a classic old-economy activity while Brookfield Infrastructure Partners supplies globally diversified contracted flows with rising exposure to data infrastructure. Both present sensible entry points ahead of wider market recognition of their durability.

Should you purchase shares of Brookfield Infrastructure Partners today?

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Micah Zimmerman holds no positions in the mentioned equities. The Motley Fool maintains positions in and endorses Waste Connections. The Motley Fool recommends Brookfield Infrastructure Partners. A disclosure policy applies.

The perspectives expressed here belong to the author and may not align with those of Nasdaq Inc.