Vulcan Materials Company (Holding Company) (VMC)

Vulcan Materials quarries crushed stone and sand — a product not worth hauling more than a few dozen kilometres.

The economics are set by geography: haulage cost quickly exceeds the value of the stone itself, so a quarry serves a limited radius and within it faces almost no competition. Permitting a new quarry near a city is close to impossible — that regulatory barrier is the main protection of existing assets.

Demand comes from road building, which is funded by government programmes and is therefore less cyclical than housing. Price per tonne is raised almost every year and outpaces inflation — the main profit lever, since volumes depend on other people's budgets. Risks: fuel, labour costs and a pause in infrastructure spending. The company pays a dividend.