Ok, so then to answer your question more completely;
I own stocks rather than funds because I'm choosing exactly what I want to own instead of buying groupings. I do so at the risk that the S&P will outpace me, that is true, however I earn more dividend income than I would if I owned an S&P index.
There are dividend based funds, certainly, but they're not as targeted as I want to be, on the whole I own less than 30 different companies, that is about the absolute bare minimum that a fund would hold and most hold many more.
I also like to buy stuff that wouldn't normally fit my profile, which would not be found in focused funds. For instance a large cap dividend growth fund is not going to include stuff like Church and Dwight, it pays about a 1.5% dividend, but I like the company and so I own it....currently I'm over 100% in cap gains on it, but it's something I would not own if I had a focused fund.....unless I wanted a mid cap growth fund...then I would own a small % of it. I own it because in 20 years it could be a P&G.
I can also own stuff like BAC which is not very appealing in regard to the dividend, but I own it on speculation that they will raise the dividend to fit in with their peers.
Funds are also behaving the opposite of what I want, most are not going to be staking themselves into stuff like large cap oil producers, but I want to continue holding those positions.
So, a fund that would fit me, is a mostly large cap dividend growth fund that makes seemingly odd purchases on a whim.