Updated
Updated · Yahoo Finance · Oct 30
24/7 Wall St Names 4 High-Yield Roth IRA Stocks as REITs Face 15% Tax Drag
Updated
Updated · Yahoo Finance · Oct 30

24/7 Wall St Names 4 High-Yield Roth IRA Stocks as REITs Face 15% Tax Drag

3 articles · Updated · Yahoo Finance · Oct 30

Summary

  • 24/7 Wall St said four high-yield stocks gain the most from Roth IRA placement because qualified withdrawals are tax-free, shielding reinvested dividends from annual tax drag.
  • REIT payouts such as Realty Income are generally taxed as ordinary income, while Canadian dividends like Enbridge's lose a 15% withholding cut for U.S. investors outside a Roth.
  • Verizon made the firm's broader top-10 buy list after generating $10.2 billion in first-half free cash flow against $5.9 billion in dividends and paying off Frontier debt six months early.
  • Altria also stood out with a $4.44 annualized dividend yielding about 5.97%, covered by 2026 adjusted EPS guidance of $5.61 to $5.72 and supported by debt-to-EBITDA of 1.9x.
  • The screen underscores how account type can matter as much as yield for income investors, especially when taxes can erode compounding on high-payout stocks.

Insights

Why are savvy income investors quietly moving massive REIT and foreign dividend portfolios into Roth accounts this year?
Could sheltering high-yield stocks in a Roth IRA actually waste your most valuable tax-free growth space on low-growth assets?