Dividend Stocks For A Roth IRA

From my perspective, one of the best assets that an investor can hold in a Roth IRA is a high-quality dividend paying company where the starting yield is in that 4-6% sweet spot and is likely to grow. Considering that a dividend payout is a taxable event in a regular brokerage account, it can be part of an intelligent asset allocation strategy to put the assets where the dividend will constitute a large part of the total return into a tax-advantaged account so that the cash distributions can compound uninhibited for a long period of time.

Personally, I think the current investing environment is ripe for buying a high-yielding oil company and tucking it away in a tax shelter like a Roth IRA. That means ConocoPhillips (COP). That means Royal Dutch Shell (RDS.B). That means BP (BP). Because of the favorable tax treaty between the United States and Great Britain, you can receive BP dividends and Shell's Class B share dividends in a retirement account without having to pay a tax to the British government.

Source: Seeking Alpha

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