If you are compounding outside a TFSA/RRSP (assume its full), can you make decent gains against tax, or does it really drag the returns? I believe the highest tax bracket on dividends is 25% or something.
I have been knocking around this super-compounding strategy. I would buy a basket of ETFs then use the margin to buy a little higher yielding stuff, REITs and covered calls. Every month once the dividend comes in, buy more stock and move the margin up a safe amount. Rinse and repeat.