Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

The investment tactic I’m about to share could probably be dismissed as a mere mind game.

If so, I plead guilty – but since behavioral finance tricks can help steer us in the right investment direction, this trick serves a worthwhile purpose.

A Mental Trick

My mind game involves thinking about dividends as a way to get stocks for “free.” I use quotation marks because we all know that in the real world, nothing is free. Although, dividend stocks have the unique ability to make an investment appear to be free, and that’s what I’m getting at.

For illustrative purposes only – since this is not about recommending a particular stock or industry sector – I’m going to use Consolidated Edison (ED ), the New York-based electric and gas utility as an example.

A Utility Example

Shares of ConEd are currently trading at about $76.50. That’s down from the year’s high of $81.55 in July and much better than the low, which was $64.91 in early January, just before the stock’s ascent throughout the winter and early spring. From March to May the stock declined a bit, then rose into July. Since then, it has been on a gradual downward slope. For our purposes however, all of that is mostly irrelevant.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Philip Morris International Inc. Leads 50 Stocks Going Ex-Dividend This Week

There are 50 stocks going ex-dividend this week starting Monday, June 18. For income investors...

Premium Trump%20and%20kim
News

The Market Glance for June 18: Trump and Kim Arrive in Singapore

As we are nearing the end of the Q2 earnings season, the market will focus mostly on a number of...

News

Tiffany & Co. Increases Dividend by 10%

Each day, companies across the globe announce upcoming dividend payouts. In our Dividend Payout...