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
Thank you for selecting your broker
We are redirecting you to the Broker Center now
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Thank you for your submission, we hope you enjoy your experience

Halloween Sale: Dividend.com Premium Price Slashed — Redeem Now

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

Best Online Brokers

At Dividend.com a large portion of our readership is of a discerning, self-directed nature. As...

Premium Shutterstock 33016663

Converting Assets to Income: We Can Do It Better

When is $1 million worth about $22,000?

The answer is, in retirement. How the math works, why so...

Dividend Stocks and Options

How to Earn a Synthetic Dividend from Non-Dividend Paying Stocks

There are several reasons why specific companies will not distribute dividends to investors. In...