Dividends vs. an Annuity: Which Turns $840,000 Into More Monthly Income for Life?

An $840,000 investment can generate income through dividends or annuities, each with trade-offs. Conservative dividend stocks yield about 3.5%, producing $2,450 monthly with growth potential and principal preservation. Moderate yields (5-7%) offer $3,850 to $4,900 monthly but less growth. Aggressive options yield 8-12% but risk principal loss. Annuities provide $5,250-$5,600 monthly guaranteed income but no principal return and inflation risk. A hybrid approach—annuitizing essential expenses and investing the rest in dividends—balances security and growth.