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Investing in dividend-yielding stocks with money borrowed from margin account?
In addition to the other answers, here's a proper strategy that implements your idea: If the options are priced properly they should account for future dividend payments, so all other things aside, a put option that is currently at the money should be in the money after the dividend, and hence more expensive than a put option that is out of the money today but at the money after the dividend has been paid. The unprotected futures (if priced correctly) should account for dividend payments based on the dividend history and, since maturing after the payment, should earn you (you sell them) less money because you deliver the physical after the dividend has been paid. The protected ones should reflect the expected total return value of the stock at the time of maturity (i.e. the dividend is mentally calculated into the price), and any dividend payments that happen on the way will be debited from your cash (and credited to the counterparty). Now that's the strategy that leaves you with nearly no risk (the only risk you bear is that the dividend isn't as high as you expected).  But for that comfort you have to pay premiums.  So to see if you're smarter than the market, subtract all the costs for the hedging instruments from your envisaged dividend yield and see if your still better than the lending rate.  If so, do the trade.