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3 Dividend Stocks for Your IRA

By Nicole Seghetti – Updated Feb 14, 2017 at 4:46PM

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Time is running out for funding your IRA. Income investors should consider AbbVie, 3M, and Textainer.

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 (ABBV 0.45%) spun off from Abbott Laboratories (ABT -1.37%) 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 (MMM 0.25%) 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.

A member of the elite Dividend Aristocrats, 3M has increased its dividend for a wildly impressive 55 consecutive years. The stock pays a dividend yield of 2.5% and recently boosted its dividend by 35%. 3M's payout ratio is a very healthy 38%, indicating the company has plenty of room to increase its dividend in the future.

Textainer Group Holdings (TGH 0.85%) owns, manages, and leases a fleet of marine cargo containers. In fact, it's one of the world's largest intermodal container leasing companies. Some of Textainer's competitive advantages include massive economies of scale, high fleet utilization, and a stable customer base. And we haven't even started talking about its incredible dividend.

Textainer Groups Holdings' dividend yields 5%, which the company has more than doubled over the past five years. The payout ratio for the dividend is 58%, which still leaves some room for further growth. The company's forward P/E ratio of 10 appears extremely attractive. Without a doubt, Textainer Holdings is a dividend stock you'll want to consider for your IRA.

Foolish bottom line
The IRA contribution deadline is fast approaching. So don't miss your opportunity to fund a retirement account and secure your financial future. Consider these three great dividend-paying stocks for your contribution dollars today.

Nicole Seghetti owns shares of 3M. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends 3M and Textainer Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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