CovantaCovanta Holding Corp. (NYSE: CVA) is an American alternative energy company that specializes in waste to energy conversion. With a high dividend and stock momentum in recent months, it’s one of the best alternative picks in the market today.

This New Jersey based company takes a unique approach to producing alternative energy. It converts municipal and industrial waste into energy, reducing the carbon footprint required to power American homes and businesses. The company has generated five consecutive years of revenue growth. With low oil and gas prices, revenue was up just 0.11% in the 2019 fiscal year, but the company has long term potential to increase its earnings as crude oil prices stabilize. Covanta is profitable. Its gross margin in 2019 was 11.55%, and its EBITDA margin was slightly higher at 17.27%.

Profitability allows for strong investor returns. The stock currently produces a dividend yield of 3.19%, beating the wider stock market average and significantly outperforming most bargain picks. For investors focused on alternatives to traditional energy generation, it’s a strong bargain option for August.

Key Data:

  • 1 Year Price Growth: -40.87%
  • YTD Price Growth: -32.35%
  • 3 Month Price Growth: 81%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.