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3 Dividend Stocks for Your IRA

Nicole Seghetti
March 31, 2014

With just two weeks left until the IRA contribution deadline, it's time to fund this vital retirement account if you haven't already done so. Here are three great stock ideas for a dividend investor's IRA.

AbbVie (NYSE: ABBV) spun off from Abbott Laboratories (NYSE: ABT) in early 2013. The biopharmaceutical company boasts not only an impressive drug portfolio including blockbuster anti-inflammatory drug Humira, but also a great deal of opportunities in the hepatitis C market. Even though Humira will come off patent in 2016, AbbVie is focused on future growth opportunities. The company is aggressively investing in proprietary technologies, allowing it to get a leg up on targeted cancer treatments.

AbbVie's dividend yields 3.3%. The payout ratio for the dividend is a mere 17%, meaning just 17% of AbbVie's earnings go to paying its dividend. That leaves ample room for further dividend growth. The company's forward P/E ratio of 14 also appears attractive. AbbVie is a dividend stock you'll want to consider for your IRA.

Many people know 3M (NYSE: MMM) for its Post-it Notes, but the company has more going for it than sticky squares of paper. 3M boasts extremely diversified revenue streams in five distinct business segments, spanning industries like health care, energy, and transportation. In fact, no more than 35% of 3M's sales come from any single business segment. This diversification reduces 3M's exposure to the often-large cyclical swings in performance typical of the industrial sector. 3M has also recently stepped up its pace of innovation.

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