US dollar margin interest rates, at least at Interactive Brokers, are extremely low. Even with their $10 monthly fee for not generating enough trades to eliminate the fee, the margin interest rate is effectively 3% on $10,000 borrowed and it gets lower the more you borrow.
It seems a shame to not take advantage of low rates, so I opened a margin account in December 2010 with $10,000 as an experiment to see how much consistent monthly income could be derived from dividends. The goal is to have at least 2 stocks paying their quarterly dividends each month plus a couple more stocks that pay monthly for a total of 8 stocks.
You can follow the progress at:
So far I've targeted dividend growth stocks, trying to maintain at least a 6.5% initial average yield (not counting the leverage). Purchases are in 100 share blocks, shooting for 200 shares minimum. Stock prices shot upward as I was making purchases and haven't come down, so I wasn't able to complete my initial three purchases as planned and I comprimised on filling out my margin limit with half purchases of LTC and UHT.