If I don't ever sell stock, why do I get capital gains income?Should I dispute this?

Report all Dividend income as shown on Form 1099-DIV.

If you own stock and reinvest the dividends, you still report the dividends as income in the year they are paid. They are used to purchase shares or fractional shares of the underlying stock. When you sell shares, these dividends on which you paid tax, become part of the cost basis of the shares and are used to reduce your gain/increase your loss on the sale.

See reinvested dividends in this link about Cost Basis. 

Capital Gain Dividends are dividends that a mutual fund corporation elects to pay out of its capital gains dividend account.

See also this TurboTax tips article regarding Dividends.

Is it from Mutual Funds?  If so, the Mutual Funds sold some things, and that capital gain distribution is passed on to you.