posted on 06-06-2019 Dividend Fund Updated October 1, 2019 What is a Dividend Fund? A dividend fund is a type of mutual fund which invests exclusively in equity shares which pay regular dividends. How Does a Dividend Fund Work? A dividend fund seeks to provide investors with income from common and preferred shares of stock which yield dividends in cash and stock (in some cases) on a regularly-occurring basis. It is the opposite of a growth fund, which seeks to provide investors with long-term appreciation of capital. Why Does a Dividend Fund Matter? A dividend fund is a good choice for investors seeking regular income payments over appreciation. Investors should be aware that a poor market climate might result in certain companies' not paying dividends along with decreased fund value. Read This Next 5 Credit Cards That Will Pay You Hundreds Just For Signing Up (2020) What's even better than earning rewards for spending on your credit cards? Getting paid hundreds of ... The Top 4 Balance Transfer Credit Cards for 2020 Tired of dragging credit card debt around with you? Taking 15 minutes to transfer your debt to a cre... The 5 Best Rewards Credit Cards for 2020 If you're going to spend money anyway, then why not get paid for it? Whether you're looking for c... Related Definitions Mutual Fund Mutual funds are open-ended investment companies that pool investors' money into a fund operated by a portfolio manager. This manager then turns around and... See More Equity There are various types of equity, but put simply -- equity is ownership. In the trading world, equity refers to stock. In the accounting and corporate... See More See More Income Income is an actual or recorded inflow of cash or other assets. The term is used in many different contexts. See More Preferred Shares Preferred shares represent an ownership stake in a company -- in other words, a claim on its assets and earnings. However, as the term suggests, "preferred... See More Stock Stock, also known as equity, represents ownership interests in corporations. Whether you own one, 100 or 100 million shares of stock in a company, you're... See More Yield Yield refers to the cash return to the owner of a security or investment. See More Cash Cash is an asset that is in currency form. See More Popular Articles Investing Financial Statement Analysis for Beginners Investing 15 Financial Ratios Every Investor Should Use Investing Calculating Internal Rate of Return Using Excel or a Financial Calculator Personal Finance 5 Common Sense Lotto Realities Everyone Ignores Loans How to Calculate a Monthly Loan Payment in Excel (Mortgage, Car Loan, and More) Popular Calculators Loans Calculator Loan Interest Calculator: How Much Interest Will I Pay My Lender? Investing Calculator Simple Savings Calculator: How Much Could I Save Up Over Time? Investing Calculator Million Dollar Savings Calculator: How Much Do I Need To Save to Become a Millionaire? Loans Calculator Car Loan Calculator: What Will My Monthly Principal & Interest Payment Be? Mortgage Calculator Mortgage Calculator: What Will My Monthly Principal & Interest Payment Be?