A dividend stock is an individual stock, while a dividend fund is a mutual fund or ETF that invests in multiple dividend-paying stocks. Investors in dividend funds can choose to reinvest dividends for more shares of the fund or ETF or simply take the dividends as an income stream. Holders of individual dividend stocks can take their dividends as an income stream or may have the option to participate in a Dividend Reinvestment Plan (DRIP) that automatically reinvests dividends for additional shares of the individual dividend-paying stock.