As an investor, you will either get money from Capital Appreciation or Dividends.
Capital Appreciation is where you leave your shares alone and sell them when share prices have gone up.
Dividends are payments from companies that have made a profit. Large companies who are doing well will dish out part of the profit to each of its shareholders in the form of a dividend. Normally, there is a fixed rate of money per share, i.e. a penny per share.
Most companies choose to invest the profits back into the company to help it grow. The basic general rule to keep in mind is that smaller companies will reinvest, larger companies tend to pay out dividends.
Income stocks are shares in companies that pay dividends and that provide an income. Growth Stocks are shares in companies that reinvest their profits.
