I have been asked about my (our) borrow to investment program via DM’s and comment section, recently @prem82@starving_artist Today I will share my (our) total assets in two non-reg accounts ( My wife is guilty by association ) and how much free income we are generating on a monthly basis. All borrowed money is currently being used from a secured personal line of credit at 5.45%. $LBS Total shares: 8,668 Purchase price: $7.50 Dividend yield: 16% Cap appreciation: 30.4% $BK Total shares: 3,254 Purchase price: $10.75 Dividend yield: 16.38 (variable) Cap appreciation: 17.95% $BANK Total shares: 6,610 Purchase price: $7.80 Dividend yield: 16.92 Cap appreciation: 6.41% $NVHE Total shares: 4,660 Purchase price: $8.37 Dividend yield: 31.54% Cap appreciation: 53.76% Total monthly income $3,087.65 Monthly interest $858 Total monthly free cash flow $2,229.65 Total income received YTD $21,000 All interest payments are tax deductible at your highest income Line 22100 on your tax return. We receive T5 and T3 for eligible dividend tax credit capital gains but any ROC is a deferred tax on sale of the asset. I purchased $BK and $LBS in July/Aug last year after the bank of Canada started to cut interest rates. I added $BANK in the fall last year as I was seeing capital appreciation on my other two assets. I added $NVHE in March of this year followed by a large purchase during the tariff announcement week at $7.30. This was going to be a DCA opportunity only but after I looked at all the numbers, I decided not sell any shares. I am currently looking at taking on a mortgage style loan which would greatly reduce my interest rate but I would have to pay principal too. Still sitting on the fence with this opportunity. I added screen shots of actual Aug dividends and 12 month performance from both accounts. I try my best to be open and honest with you all but I am not giving anyone the green light to do the same. All my purchases were based on opportunities only and you will have to find yours. This works well with low interest rates and a bull or flat market. This goes bad when interest rates are rising and we are in a bear market. Understand your risk tolerance and remember, you are taking on the stock market. Happy investing!!! Disclaimer: This is not financial advice, always do your own research and analysis.
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33 Comments
yield @yield · 1yrEdited
Great. I doing the same already. After paying interest, I’m getting 206$/month form the Margin account alone… yearly 2472$
JC @icedragon · 1yr
What is the monthly dividend you need to reach FIRE?
Christopher J@cjs033 · 1yr
😆😆👏👏
Kris @kris.okallgood · 1yr
Thanks for sharing 🙏 I’ll continue to follow along, not sure if it’s for me yet but I’m definitely curious.
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