Dividend Stocks Worthy of Your RMD

Posted by D4L | Monday, December 10, 2012 | | 0 comments »

IRS rules pertaining to IRA accounts require distributions based on a somewhat complicated table, and not adhering to the rules can be punitive — namely, the IRS can penalize (tax) you 50% of the required minimum distribution (RMD). Of course, the question then becomes: Now that you have the money from the RMD, what do you do with it (if you don’t want/need to spend it right away)?

Well, this situation came up just last week with a reader (let’s call her “Mom”), who said she put her distribution money into a dividend stock through a separate non-IRA account. I love the idea — it’s certainly better than just dumping it into a bank account paying just more than nothing, or a CD that would tie her money up for 18 months at an interest rate of … well, just more than nothing. So what are some dividend stocks you might consider piling your RMD into? Here are five ideas: Newell Rubbermaid (NYSE:NWL), Leggett & Platt (NYSE:LEG), Briggs & Stratton (NYSE:BGG), Corning‘s (NYSE:GLW) and Flowers Foods (NYSE:FLO).

Source: InvestorPlace

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