@xorfish Taken from Does margin interest rate trading switch you to professional trader? - #26 by element532. Here is why I think dividends may not be that irrelevant for margin users:
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The investments are not leveraged or the taxable investment income from the securities (such as interest, dividends, etc.) is greater than the proportionate interest on debt.
Or am I missing something?
@San_Francisco I read a few papers from US dividend aristocrats and it seemed that it wasn’t crazy at all to expect nice rates from a dividend focused portfolio. Companies like IBM seem to pay around 5%, combining that with a bit of REITs and other stuff could easily beat the <2% margin rate.
If you can do that without the tax office pinning the “professional trader” label on your forehead, that is.