How does stock investment return like compound interest?

Q & AHow does stock investment return like compound interest?
Dominic Choo asked 6 years ago

For example, assuming a mutual fund is distributing dividend 6% of current owned value. Next year, the same % of dividend is given. So I can say that the mutual fund is giving compound interest of 6% annually for 2 years. How does stock work in such way? Thanks.