Lack of Dividends Make Equity Indexed Annuities a Tough Sell
Dividends contributed five percent of the 7.9 percent total return from stocks over the 200 year period from 1802 through 2002.
Dividend paying stocks in the S&P 500 produced an average return of 8.92 percent since 1972. Over that same roughly 40 year period, non-dividend paying stocks in the same index returned 1.83 percent.
Most equity indexed annuities only count market price gains in their reference index when crediting...