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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: Re: Dividend stocks in your Roth or in a taxable Date: 4/19/2007 9:18 PM
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High dividend paying stocks are good to hold in a Roth IRA since the dividends and gains will not be taxed.
If they are held in a taxable account you have the disadvantage of the dividends being taxed now. The good news is that they are taxed at a lower rate, assuming they are qualified dividends.
OTOH if they are held in a traditional IRA you avoid the tax now but eventually they will be taxed at ordinary income rates.
As they say, "It depends."

Bob
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