How do I get the application folder icon on the right side of my dock?

Hello All,

I recently upgraded to El Capitan from 10.6.8 Snow Leopard!!! WHOA!!!! I know I was living in the past. Anyways, I have tried dragging the applications icon from finder into the right side of my dock. All it gives me are my application icons stacked on top of each other. What I want is a folder that looks like the first image attached (below this text) to appear on my dock not like the second picture attached (this is what is in my dock). Thanks for any help guys and gals and everyone!