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Tim McAleenan Jr.

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  • Why The Highest-Yielding Dividend Stocks Deliver The Best Capital Gains [View article]
    BuyandHold, I have a personal question for you (feel free to disregard and tell me to take a flying leap).

    As someone who has accumulated exceptional stocks and not sold them, what was the trajectory of your experience like? By that, I mean, was there a point at which you could identify "Holy cow, I'm loaded" when the dividends started exceeding $X per month? Was there a point at which you began to see yourself as more of a capital allocator with fresh dividends each month, as opposed to a guy saving up a few hundred here and there to put somewhere intelligently? I guess I'm curious as to whether you view your investing life in stages, and if so, whether you were aware of the transition points at the time or with hindsight.
    Mar 25 06:35 PM | 7 Likes Like |Link to Comment
  • How Well Is Altria Addressing Its Main Business Risk? [View article]
    "Why do these posts regularly refer to them?"

    Probably because the authors of "these posts" look at Altria's financial disclosures and see the SABMiller dividend of $400+ million getting reported to the SEC.
    Mar 25 07:42 AM | 10 Likes Like |Link to Comment
  • The 25 Best Authors On Seeking Alpha [View instapost]

    Good question!

    Most of the authors I mentioned don't even give specific stock predictions or tell you to buy anything explicitly. It wasn't a list of "these are the twenty-five guys kicking the market's ass", although they very well could be.

    Instead, I picked the writers that possess the best explanatory powers--they make investing more lucid, and they are able to teach you and hold your interest simultaneously.

    This is all my opinion, naturally. But I do doubt anyone could read the archives of all 25 of them without reaching the conclusion that at least a dozen of them are worth their while.
    Mar 25 01:09 AM | 8 Likes Like |Link to Comment
  • Don't Sell McDonald's Stock Because Of 2 Minimum Wage Myths [View article]
    Very good point! I'm currently writing something about Coca-Cola's (potential) issuance of 500 million shares for employee compensation.

    When I've studied the economic impacts of minimum wage increases, I generally reached this conclusion: the winner is the person receiving the wage increase. The losers are the people who have to deal with hour cuts or a company hiring less, the person managing the McDonalds restaurant that doesn't get an appropriate pay increase, and perhaps the customer that has to pay the higher price if the business decides to directly pass on the added cost to customers.

    I've also been reading about some of the economic changes the country had to go through during The Great Depression and early war years. If we could handle that and still stand, it seems comical to obsess over $1 or so in minimum wage increases.

    Not only are there a lot of better things you could be doing with your mental energy, but expressing your opinion about minimum wage increases in strictly economic (as opposed to human) terms will make anyone actually earning minimum wage want to punch you in the face.
    Mar 25 12:59 AM | 4 Likes Like |Link to Comment
  • Don't Sell McDonald's Stock Because Of 2 Minimum Wage Myths [View article]
    "In addition, don't think for a minute that your franchisees get attacked and MCD comes out scot free."

    Rose, that's a very good point to add.

    After all, if a franchise raises prices to offset higher wages and it results in lower traffic and sales, then the McDonalds parent will collect lower fees.

    It's a partial immunity, not a perfect immunity, and thank you for pointing that out.
    Mar 24 05:34 PM | Likes Like |Link to Comment
  • Dividend Growth Investing: An Introduction To Creating Wealth (Part 2) [View article]
    Dave, excellent work.

    When people say that those with long-time horizons can afford to take more risk, that's a code word for saying "you can handle the 100% wipeout if things go wrong." There is some truth to that statement: losing 25% of your portfolio at age 30 is an obstacle I'd rather overcome than being seventy years old and seeing 25% of the portfolio go bankrupt.

    But it also ignores opportunity cost: a dollar that you can set aside to compound for two, three, four, maybe even five decades also represents the maximum potential of the wealth you can build. If you choose a fashionable stock and screw up, it also represents maximum loss.

    Of course, the great irony of blue-chip investing is that focusing exclusively on safety of income growth has this peculiar habit of producing extraordinary capital gains. What's the old C.S. Lewis line? If you focus on heaven, you get earth thrown in, but if you focus on earth, you get neither...

    Do you think anyone ever expected Exxon to deliver 14% annual returns over the past 44 years? Heck no. It was as blue-chip as it gets--the Supreme Court had to break it up because it was too monopolistic, for heaven's sake. It was billed as a stock for old people and people scared of their own shadows. Yet, a $10,000 investment has compounded into $4.2 million since 1970.

    Maybe at some point, people in search of great capital gains will acknowledge that the habit of searching for extremely reliable income prevents you from loss in truly depressing economic times, and this serves as a coiled spring for creating long-term capital gains as well. That's how granny and her 2.66% yield from Exxon shares ends up owning the entire town.
    Mar 24 05:06 PM | 33 Likes Like |Link to Comment
  • Visa: High Price Should Not Prevent Exceptional Returns [View article]
    It's a separate company that operates under license from Visa (V).
    Mar 23 05:00 PM | 1 Like Like |Link to Comment
  • Visa: High Price Should Not Prevent Exceptional Returns [View article]
    Miner, check out this article about new card chip technology:

    Here's the relevant quote:"The main problem is that American retailers’ card readers can’t read the chips. So, Visa and MasterCard next year will begin twisting arms to get retailers to install new readers.

    The arm-twist involves a shift in liability for fraud. Right now, the bank that issued the card usually eats the cost of fraud. As of October 2015, that changes. A merchant without a chip reader will eat the cost if they accept a magnetic strip transaction from a card that is supposed to contain a chip.

    The message to the mom-and-pop shop: Get new card readers, or else."

    That's an indirect way of me answering your question--the moats of Visa and Mastercard aren't just the facts that they are payment processors. There's a laundry list of other services they provide as well, and it would take a competitor with considerable financial clout in the billions of dollars to start posing a threat.

    It's not the processing itself that is the sole business Visa and Mastercard engage in; it's the additional promises and backing they can make as well that are integral services they provide, and difficult to copy without billions of dollars and a healthy helping of leprechaun luck.
    Mar 23 04:09 PM | 3 Likes Like |Link to Comment
  • The Positive Psychology Of Dividend Growth Investing [View article]
    You nailed it again.

    Going through Dave's article archives is like watching DiMaggio from May 15th-July 17th, 1941.

    Hit. Hit. Hit.

    ...Only Dave's streak is longer.
    Mar 20 03:18 PM | 23 Likes Like |Link to Comment
  • Why Seeking Alpha Embraces Pseudonymity [View article]
    Eli, you nailed it.

    People shouldn't be investing because "Person X says buy this stock", they should be investing because they find the argument compelling when judged on the merits.

    Essentially, Seeking Alpha is an endless accumulation of evidence, and it is up to us to use our common sense to either buy, sell, or hold based on the information we encounter and analysis we find persuasive.

    I love Seeking Alpha's lack of paternalism that tends to pervade much of financial media. You get treated like adults here, and are entrusted with the power to separate the compelling from the unpersuasive.

    It's a giant meritocracy of ideas, and I love that.
    Mar 19 12:25 PM | 25 Likes Like |Link to Comment
  • 8 Questions And Answers About The General Electric Spin-Off [View article]

    Except the specific ratio (i.e. one-to-one) is not declared yet.
    Mar 18 10:04 PM | 1 Like Like |Link to Comment
  • How To Get The Most Out Of Dividend Growth [View article]
    Chowder, your portfolio is brilliant. Few things impress me as much as the formula of intelligence plus perseverance to create sustained excellence, and that is exactly what your portfolio does.

    In Springsteen terms, you talk about a dream, and then make it real.

    It's awesome.
    Mar 13 09:17 PM | 3 Likes Like |Link to Comment
  • How To Get The Most Out Of Dividend Growth [View article]
    It took you that long, rnsmth? ;)
    Mar 13 09:16 PM | 3 Likes Like |Link to Comment
  • Exxon Mobil: The Dividend Growth Picture Looks Unusually Bright [View article]
    What's your time horizon and objective?

    If someone said "buy one and take a fifty-year nap", I'd pick Exxon.

    If someone said, "Which will pay the most total dividends in the next ten years", I'd pick BP.

    If someone said which will have the best total returns in the next 7-8 years, I'd guess Chevron or BP.

    For me, that's largely a leisure academic debate to try and guess which is best. As a matter of real life, the plan is to own Conoco, Royal Dutch Shell, BP, Exxon, and Chevron, as they are all excellent companies and bring something unique to the mix.
    Mar 11 11:39 AM | 8 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    Uain, I want to enter your world. It's Monday where I'm at.
    Mar 10 10:14 PM | 9 Likes Like |Link to Comment