The following benefits will accrue to stockholders:
Dividend gain: When a company is profitable, its shareholders usually receive a dividend. Dividend payments, however, may be delayed if the company decides to retain all earnings for new business investments.
Capital gain: A capital gain occurs when the stock price rises during the holding period.

Shareholders earn returns on stocks through capital appreciation and dividends. When a company performs well, its stock price rises, allowing investors to sell their shares at a profit. Dividends provide another income stream, as many companies distribute a portion of their profits to shareholders periodically. Additionally, stock splits can increase the number of shares held, potentially boosting future gains. Some investors also benefit from bonus shares, issued free of charge by companies as a reward. Shareholders may also earn through rights issues, where they can buy additional shares at a discount. Long-term investors often reinvest dividends to compound returns. Unlike fixed-income investments, stocks offer the potential for higher returns, though with greater risk. Overall, a well-chosen stock portfolio can generate wealth through both growth and income over time.