FYI. Below is a DSM-style side-by-side of EMN vs three defensive alternatives, focusing on how each complements what I already own. Will likely start a position in EMN today or Monday.
Candidates compared - Eastman Chemical (EMN) – Materials / cyclical income
- Waste Management (WM) – Defensive industrial
- Republic Services (RSG) – Defensive industrial
- Williams Companies (WMB) – Infrastructure / utility-adjacent
1. High-level comparison (what role do they play?)
Stock Sector role Yield EPS growth Cycle sensitivity Income reliability
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| EMN | Materials (specialty) | ~4.8% | ~14% | Medium | Good, cyclical | | WM | Defensive industrial | ~1.4% | ~11% | Very low | Very high | | RSG | Defensive industrial | ~1.1% | ~9–10% | Very low | Very high | | WMB | Infrastructure | ~3.1–3.5% | ~15% | Low–medium | High |
2. How each fits your portfolio specifically
EMN — income + cyclicality ballast Strengths
- High yield without financial engineering
- EPS growth >10%
- Valuation is reasonable, not euphoric
- Adds Materials exposure, which you currently lack
Risks
- Earnings will fluctuate in recessions
- Dividend growth pauses possible during downturns
Best for you if:
You want yield replacement + inflation sensitivity and can tolerate some earnings cyclicality.
WM / RSG — defensive compounding anchors Strengths
- Extremely stable cash flows
- Pricing power via municipal contracts
- Low beta, recession-resistant
- Best-in-class dividend safety
Tradeoff
- Low current yield
- Valuations are rich (market already knows they’re great)
Best for you if:
You want to reduce volatility and protect income durability, not maximize current cash flow.
WMB — infrastructure sweet spot Strengths
- Fee-based natural gas pipelines
- Direct beneficiary of LNG + data center power demand
- Yield meaningfully higher than WM/RSG
- Less volatile than upstream energy
Risks
- Regulatory / rate sensitivity
- Energy-adjacent headline risk (though cash flows are stable)
Best for you if:
You want stable income with growth, closer to a utility but with better upside.
3. DSM “best complement” ranking (for your situation) Given:
- ARCC trimmed (private credit risk reduced)
- O + OKE already added
- Desire for maximum income certainty
- Lack of Materials / Industrials exposure
EMN – Best yield + diversification add
Replaces private credit income most cleanly while adding a new sector.
WMB – Best infrastructure stabilizer
Pairs very well with OKE; reinforces energy infrastructure without doubling risk.
WM / RSG – Defensive ballast, not income replacement
Excellent long-term holds, but not ideal if the goal is replacing lost yield now.
DSM Recommendation (clear and actionable) If choosing one:
- EMN — best balance of yield, growth, valuation, and diversification
If choosing two:
- EMN + WMB
- EMN = cyclical income + valuation support
- WMB = stable, utility-like infrastructure income
This combo:
- Replaces private credit income
- Improves sector balance
- Keeps portfolio beta controlled
- Preserves long-term dividend growth
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