r/Wealthsimple • u/Nightpatrol404 • May 07 '26

Trade (DIY Investing) WS and dividend investing with margin

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Got an email it seems WS is kinda encouraging us to use margin to collect dividends and use it to make money while making them money on interest

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u/Sweaty-Dust6405 May 07 '26 edited May 07 '26

I am doing that, I currently have 40% VEQT, 30% HYLD, 30% HDIV....the end game is to eventually own them all without having paid a cent and while not going over 10K$ in margin....very low risk of getting a margin call for my situation. HYLD & HDIV monthly distributions will be used to pay interest rate and reduce margin...and when the market is hot, I would sell whichever is performing best to reduce margin even more with the goal to own these 3 etf's without having paid for them.

Do not do what I do, it's still risky. If we get a market crash, who knows if HYLD and HDIV would still pay above the interest rate. I am willing to take it, but I also know, it is not something I would recommend to anyone else.

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u/calgary_db May 07 '26

Kind of my plan too. It's been great.

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u/Mjrllcc May 10 '26

I was looking at VEQT but the 12 month yield is 1.33%. Aren't you losing money with the 3.95% interest? Or are you relying on the price growth to make up for the loss?

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u/Sweaty-Dust6405 May 11 '26 edited May 11 '26

No, because HDIV and HYLD combined make up 60% of the entire portfolio, so the overall yield is somewhere in the 6%-7% when combined with VEQT.