I am retired and live off the distributions and dividends from my portfolio. What do you think of using a small amount of margin to buy some more dividend paying stocks? The yield on some pipelines and banks is higher than the interest rate on the margin loan. (I am thinking of, say, using just 20% of margin available.)

If you could buy on margin when the market hits bottom, stay margined as the market rises, and sell out at the peak, you could very quickly acquire a measurable proportion of all the money in the world. Nobody ever succeeds in that, of course… Read More