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2.3% yield is after tax and interest expenses (which you have ignored), you then get capital gains on shares on top of that (just like property). Obviously you wouldn't buy just one share, but it was just an example. in your example: $1,000,000 debt @ 4.5% = -$45,000 $80,000 Rent...

ANZ $32 pa / Dividends $1.81 pa / Yield 5.65% / 100% franked Borrow $1,000,000 and purchase 31,250 shares. Provides and income of $56,562 pa + $24,240 pa Franking Credits Assume Interest (line of credit, not margin loan) = 4.5% pa, tax rate 34.50% Assessable income = $80,802 (grossed up...