How I Beat The Market Using Leveraged Dividends On Margin

1.) I use margin for a completely different purpose than most. I don’t speculate with margin and trade stocks, I buy sure things. Every brokerage account gives you 4 dollars for every 1, I am just using this amazing benefit of equity to my advantage!

2.) If they are 4-star rated, then the dividend pays back the investment in a certain amount of time, usually in a shorter timeframe than real estate (20% X 5 Years= 100% return). Cornerstone is 4-star and has a 20% yield.

3.) Speaking of Cornerstone, I use my margin on index names only. Not risky stocks or funds with high dividends (those are my small positions that I can sell at any time for minimal losses).

4.) No, I concentrate most of my money in the index funds that track the S&P and Nasdaq. They don’t lose overtime (7% per year average) or have big drawdowns (even 2022 was 20-30).

5.) Stocks were down much more than the indexes, because they are higher beta (volatility). I choose low volatility funds. Bonds are typically very low volatility (when rates are calm).

6.) I also choose low maintenance funds so that I preserve more of my equity. The higher the equity or “available for withdrawal” number, the less likely you will encounter a margin call.

7.) I hedge with short options. They always lose but don’t affect my performance much, as you see in the video, and allow me to sleep at night with the heavy margin.

8.) Margin interest rates are too low NOT for me to take on margin.

9.) More dividends through margin qualify me for loans. Even without margin, the dividends still qualify you for loans.

10.) Diversify within. You already buy the indexes, but then the stocks you buy should replicate the indexes too.

70% of people are paycheck to paycheck, that’s why I use margin to get ahead. All of the great ones took out loans to make it in life. 90% of traders lose, and 90% of fund managers can’t beat the S&P. So, this is why I tie everything to the indexes, margin or not!

[stevenclay]

So glad you make these videos
You are helping so many of us get ahead

[AP__]

You just blew my mind. Now I will have to binge-watch several of your videos and check out your website. Thank you for sharing this invaluable information. Your generosity is greatly appreciated!

[terraslayer]

I'm actually doing this with my TSLY investments. I have roughly 2000 shares and borrowing at 60% margin. This first month getting a $500 extra profit from div after paying interest. My interest rate is at 13%, which comes to about 1.08% monthly. TSLY is paying roughly 5% yield per month. As long as it hold, I'm good to go.

[bluecollarbullionballer]

I dont use that much margin.I borrow cash value from my IUL to buy divden stocks.I then pay the money back.Rinse and repeat.I am more conservative than you but like your style.Happy investing/stacking.

[DavidOldenburg]

CLM was at $14 in March 2022 (yes this was a high) and it's now down 40% to $8.36... Yes, the yield of over 17% annual is great but depending on when you buy you could easily end up upside-down even with the great dividend. You also run high risk of having to sell a losing position if you are margined and it drops 40%. I hope it works out for you and anyone else taking your advice...

[rowhite]

I need to research your approach more. Definitely very knowledgeable

[jweezy]

If cornerstone goes down this dude is eating oatmeal for the rest of his life

[HamSquad]

going to dive into using margin after this dip, thinking of acquiring yieldmax's newer YBIT and GDXY etf's just incase the U.S. dollar takes a dump, thank you for this reassurance that it's possible!

[calb]

This is a bit above my level… so are you timing your margin investments to hit the ex dividend date and selling after the stock stabilizes after the payout?
I’m very interested in this strategy

[makingmoneyonlinefromhome]

Glad I found this! I have margin on etrade also. I want to buy a lot of Yieldmax etfs with crazy returns. So, if my margin says $20, 000, can I use all that to buy etfs?

[KOTNEmpire]

I came across your channel a couple days and and it seems we have a very similar style of investing especially your view on Margin.

I felt like I was hearing myself speak. 😅😅😅

Keep up the good work

[CygnusHomes]

So youre stating if i have a accounr worth 120k net 60k of that is in dividend/covered call etfs 60 of that in margin of the same holding is a pretty safe leverage? Or is that over keverage being af a 1:1

[timz]

why is dividend any different to appreciation apart from the extra tax liability

[euthydemos]

How are you getting margin of 4 to 1? It says etrade is 50% of initial margin. You put in $1 you get purchasing power of $2, 50% cash, 50% margin. Fidelity charges 12% margin interest, not exactly cheap.

[will]

was the book mentioned super currency or supermoney ? Could you provide some more info on that ?

[DarkBullCapital]

using stock margin beats HELO for dividend income portfolios?

[c-los]

Great video, can you clarify something. I have over 100k of margin that I can use in my trading account. If I want to buy 25k on margin to buy an ETF how much would i be charged a month for borrowing that money. Thank you.

[mbarron]

Question- are you dripping your dividends or no?

[yeonjumka-ohev]

interactie brokers loan rate is like under 2% why dont u move to them?

[OneNOnlyHD]

Hey todd. You said when your debt is paid off, your account grows by the equivilant amount. Does your account grow as the margin decreases when your dividends are paying back the debt as you go along. Or does it only grow once all the debt is paid off in your account?