There are actually two folders being displayed in the above image. Once you’re done, you’ll have a Dock that includes favorite applications and one or more folders. Then drag the folder icon from the Finder directly onto the Dock and everything should magically move out of the way so it can be added. You could use this for Downloads, Pictures, Movies, or, in this case, Applications. To start, use the Finder to identify the enclosing folder of the contents you’d like to have easily accessible from the Dock.
I’ve written before about basic Dock configuration for your Mac, but this time, let’s dig into the way that it displays the contents of folders you drag onto the Dock. But there’s a bit of customization required to get the Dock to meet your needs. In fact, between that and Spotlight (which I do hope you use extensive), you need never open up your Applications folder to find a program on your Mac system again. It seems really simple, that D0ck sitting on the bottom of the screen on your Mac system, but it’s pretty smart.