Are dividend funds a good investment?

Dividend funds are a great investment for traders of all skill levels.

While investing in either dividend funds or stocks is fine, you can choose both.

Here is what you do: buy shares in one dividend fund and purchase shares in two to three stocks.

For example, here is what a portfolio could look like:

• Invesco S&P 500 High Div Low Volatility ETF (SPHD): $0.12 per share
• Walmart Inc (WMT): $0.55 per share per quarter
• Suncor Energy (SU): $0.166 a share per quarter
• The Coca-Cola Company (KO): 0.42 per share each quarter

By investing in a dividend fund, you gain exposure to a broad array of stocks and then you can select a couple of individual stocks you have had your eye on for a while.