<human>:  What is the difference between a dividend and a capital gain?
<bot>: The primary difference between a dividend and a capital gain is in how they are taxed. Dividends are taxed at the investor's ordinary income tax rate, while capital gains from investments such as stocks or securities are taxed at a lower rate. Dividends are normally paid out of corporate profits to shareholders of the company, while capital gains are profits made from the sale of an asset.