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I'm a beginning investor, fairly young and enjoy the "wise" advice of older investors. I've been trying to grasp the implications of having a high yield stock in a taxable or IRA account. I currently hold JNJ,PFE,PAYX INTC and recently added CAG, all of which I drip. I am thinking of adding in the following year either (or both) MO and PNW. Since my accumulation should be 30-40 years (I'm 23) is the best option for me to keep it in a taxable and reinvest the dividends or do so in an IRA. The problem I have with the IRA is that I do not quite understand how it might work for high yielding dividends stocks such as REITS and Utilities.

From my basic understanding of a ROTH IRA for example the shares would accumulate and no taxes would be paid up to the withdrawal. You are allowed to withdraw funds/sell shares at the age of 59.5. What I don't understand is whether or not these shares (MO,XOM,Eastman Kodak) will be taxes if I choose to have use the dividends as income or will they "forever" be tax free dividends. Do I need to tell the broker at that time that I wish to no longer reinvest the dividends but collect them? I hope that your experience will clarify this for me. Thank you.
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