re: Robinhood stock lending

Yes, it's a no brainer to loan out stocks you plan to hold and there's no difference in your ability to trade them, you can still sell them like normal. I've made around $70k lending stocks since early 2020 but lately it's dried up because there's not as much shorting going on with the market being down.

I don't know about dividend tax implications but the main risk is that you can lose your shares if your brokerage goes bankrupt however unlikely that may be.