5 Stocks for Your Roth IRA: Google Inc (GOOG), Apple Inc. (AAPL), The Procter & Gamble Company (PG)

Not so spicy
If fiery growth stocks aren’t your thing, that’s quite all right. More mild stocks are also terrific investments for Roth IRAs. For instance, dividend-paying stocks provide a great alternative. When these stocks are owned outside of a Roth IRA, dividends are considered taxable ordinary income. But by holding dividend-paying stocks within a Roth, you get the tax-free advantage. And by reinvesting dividends, you’re buying more shares each and every time the company pays its dividend.

Consider The Procter & Gamble Company (NYSE:PG) and 3M Co (NYSE:MMM), which have both increased their respective dividends for at least 55 consecutive years. Consumer goods powerhouse P&G pays nearly a 3% dividend yield. The company has recently suffered because of high input costs and has received criticism for lackluster new products, but The Procter & Gamble Company (NYSE:PG) expects lower commodity costs. It also plans to focus more on new product innovation in developed markets and growth in emerging markets.

Meanwhile, industrial conglomerates 3M pays a 2.4% yield. Its diversified products across six major business segments (consumer and office, display and graphics, electro and communications, health care, industrial and transportation, and safety, security, and protection services) span the economy. This greatly reduces the company’s exposure to big cyclical swings that typify the industrials sector.

Foolish bottom line
It doesn’t matter if you prefer spicy or mild stocks for your Roth IRA. Regardless of which style of investing is for you, there is no better time than today to plan for your financial future. Make your 2012 Roth IRA contribution if you haven’t already, and consider these exciting stocks today.

The article 5 Stocks for Your Roth IRA originally appeared on Fool.com and is written by Nicole Seghetti.

Fool contributor Nicole Seghetti owns shares of Apple, Procter & Gamble, and 3M. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends 3M, Apple, eBay, Google, and Procter & Gamble. The Motley Fool owns shares of Apple, eBay, and Google.

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