Dividends vs. an Annuity: Which Turns $590,000 Into More Monthly Income for Life?

A $590,000 immediate annuity pays about $3,700 monthly but surrenders all principal, leaving no inheritance or liquidity. Dividend portfolios yield 3%-14%, producing lower initial income but preserving principal and offering growth that can surpass annuity payouts in 12-15 years. Combining guaranteed income with dividend investments can provide longevity insurance while maintaining flexibility. Tax treatment and personal factors should guide the choice.