Great stories are wonderful to hear and read and Gabriel Lowenberg wrote a wonderful story in the Globe and Mail “Epiphany on the Triborough Bridge” June 14, 2013. Mr. Lowenberg used to pay a toll to drive into NY via the Triborugh Bridge or now called the Robert F Kennedy Bridge, but the toll remains the same. The idea Mr. Lowenberg saw was people paying a modest sum and using the facility, this allowed the operators to have a predictable stream of cash that was immune to the competition. Depending on the cost of operating, the ownership could be a great investment. With this idea, Mr. Lowenberg invested in the CME Group – the operator of the Chicago Mercantile Exchange. Based on volume the CME is the number one exchange for trading derivative securities or options In addition the government is mandating credit default and interest rate swaps be cleared through a central organization. The organization with the ability is the CME. The profit margin is 60%. Those are great element to any story.

Linking to dividend paying stocks, the bridge example or the CME example is the type of stock you should be looking to own for a long period of time. The company has a high profit margin, has consistent revenues, growth will not come with too many outside costs, and no matter how the options inside the building trade, the middle man or the clearinghouse company will make money.

There are more questions than answers, till the next time – to raising revenues.