If you invest now 10000 $ with an average annual dividend yield of 3% in a stock paid 10 $ and sold at 12 $ kept 5 years considering taxes on dividends of 26 % and a capital gain taxes of 26% , the average annual net return on investment is 5.18 % ( corresponding to a compound annual growth rate of 4.71 %), which increases your capital by 2590 $ to 12590 $.