Are annuities better than dividend stocks?

Neither is universally better; they serve different goals. Annuities offer guaranteed, predictable income, often for life, and shift market risk to the insurer. In exchange, you typically give up liquidity, growth potential, and pay ongoing fees, which can be significant with variable or indexed annuities.

Dividend stocks offer growth potential, liquidity, and historically have helped investors keep pace with inflation, but income isn’t guaranteed. Companies can cut dividends, and share prices fluctuate with the market.

For guaranteed income you can’t outlive, especially in retirement, annuities may fit better. For growth, flexibility, and inflation protection, dividend stocks often win. Many people blend both. This isn’t personalized advice. Since amounts and timelines matter, consider talking with a fee-only financial advisor.