I remember reading about your idea of using margin at a lower rate and buying ETFs that offer a higher rate of return. I don’t remember seeing the results of your test and I was wondering if you could fill us in? Thank you
Hey there! Yes! I covered that here! I basically saw success but there is room for refinement. Too much NAV erosion got thr higher yielding funds so I've pivoted a bit.
I’ve been subscribed for about 5 months and have learned so much from your articles! Finally took the leap and activated margin trading. As I’m just starting this next stage of my dividend investing I see that I have the option to utilize my own equity (non-margin amount). I want to start slow until I get the hang of this by just using my equity as cash BUT I’m having a really hard time wrapping my head around the concept that I don’t have to pay anything back to cover the trades I make with that equity. I know it’s technically my money already but I just can’t grasp the concept of having this almost like “free money” to trade with. Do you (or anyone) have an easy way of helping me understand this? It feels like a huge mental roadblock for me!
Hi Ashley, I believe @TheGamingDividend meant to respond to your comment/question but accidentally clicked on my response to the article....therefore, scroll to a bit to see his response to you :)
Well firstly, thanks for subbing and reading! Ahh, I see what you're getting at and this is an important nuance.
Equity is still your money. It represents the value of your account (cash + investments any margin owed). You're not borrowing it. You're not being "given" anything. It isn't free money. It's the value you already own.
The confusion usually comes from this: When margin is enabled, brokers display "margin buying power" which makes it look like you suddenly have extra money.
But equity and margin are not the same. Using equity does NOT mean you're borrowing. It just means you're using the value you already have in your account, even if it's tied up in positions.
Using margin to buy high yield stocks, using those dividends to buy safer lower yielding ones and around and around it goes. A great system.
I remember reading about your idea of using margin at a lower rate and buying ETFs that offer a higher rate of return. I don’t remember seeing the results of your test and I was wondering if you could fill us in? Thank you
Hey there! Yes! I covered that here! I basically saw success but there is room for refinement. Too much NAV erosion got thr higher yielding funds so I've pivoted a bit.
https://open.substack.com/pub/thegamingdividend/p/december-dividend-report-the-2026?utm_source=share&utm_medium=android&r=4012qy
Thank you I missed that post. It would be great to see an overall position post again, thank you
You got it! I plan to release an update mid-March! Thanks!
I’ve been subscribed for about 5 months and have learned so much from your articles! Finally took the leap and activated margin trading. As I’m just starting this next stage of my dividend investing I see that I have the option to utilize my own equity (non-margin amount). I want to start slow until I get the hang of this by just using my equity as cash BUT I’m having a really hard time wrapping my head around the concept that I don’t have to pay anything back to cover the trades I make with that equity. I know it’s technically my money already but I just can’t grasp the concept of having this almost like “free money” to trade with. Do you (or anyone) have an easy way of helping me understand this? It feels like a huge mental roadblock for me!
Hi Ashley, I believe @TheGamingDividend meant to respond to your comment/question but accidentally clicked on my response to the article....therefore, scroll to a bit to see his response to you :)
Awesome structure! I’m almost there!
Thanks for the YMAX analysis. Super helpful and a really good read!
Well firstly, thanks for subbing and reading! Ahh, I see what you're getting at and this is an important nuance.
Equity is still your money. It represents the value of your account (cash + investments any margin owed). You're not borrowing it. You're not being "given" anything. It isn't free money. It's the value you already own.
The confusion usually comes from this: When margin is enabled, brokers display "margin buying power" which makes it look like you suddenly have extra money.
But equity and margin are not the same. Using equity does NOT mean you're borrowing. It just means you're using the value you already have in your account, even if it's tied up in positions.
I appreciate you taking the time to read! Thank you!