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A Dividend Growth Investor Can Beat IRS (13 March 2012)

IRA type accounts is a good velichcle for dividend investors because no taxes on dividends, but IRS required to have taxable distributions from such account after age 70.5 (IRS publ. 590 but I didn't read it because it is too early for me and IRS probably will change rules few times). IRS specified IRA Required Minimum Distribution (NYSE:RMD). I took their table and calculated annual RMD growth rate:

www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf
AGE DISTRIBUTION % distribution RDM Growth %
70 27.4 3.6496  
71 26.5 3.7736 3.40%
72 25.6 3.9063 3.52%
73 24.7 4.0486 3.64%
74 23.8 4.2017 3.78%
75 22.9 4.3668 3.93%
76 22 4.5455 4.09%
77 21.2 4.7170 3.77%
78 20.3 4.9261 4.43%
79 19.5 5.1282 4.10%
80 18.7 5.3476 4.28%
81 17.9 5.5866 4.47%
82 17.1 5.8480 4.68%
83 16.3 6.1350 4.91%
84 15.5 6.4516 5.16%
85 14.8 6.7568 4.73%
86 14.1 7.0922 4.96%
87 13.4 7.4627 5.22%
88 12.7 7.8740 5.51%
89 12 8.3333 5.83%
90 11.4 8.7719 5.26%
91 10.8 9.2593 5.56%
92 10.2 9.8039 5.88%
93 9.6 10.4167 6.25%
94 9.1 10.9890 5.49%
95 8.6 11.6279 5.81%
96 8.1 12.3457 6.17%
97 7.6 13.1579 6.58%
98 7.1 14.0845 7.04%
99 6.7 14.9254 5.97%
100 6.3 15.8730 6.35%
101 5.9 16.9492 6.78%
102 5.5 18.1818 7.27%
103 5.2 19.2308 5.77%
104 4.9 20.4082 6.12%
105 4.5 22.2222 8.89%
106 4.2 23.8095 7.14%
107 3.9 25.6410 7.69%
108 3.7 27.0270 5.41%
109 3.4 29.4118 8.82%
110 3.1 32.2581 9.68%
111 2.9 34.4828 6.90%
112 2.6 38.4615 11.54%
113 2.4 41.6667 8.33%
114 2.1 47.6190 14.29%
115 and over 1.9 52.6316 10.53%
Click to enlarge

Until age 112 years RMD growth rates are below 10%.
I presume (and this is usually incorrect) that the market value of portfolio in a year is equal to the market value of portfolio in a previous year plus collected dividends. If you invest in dividend growth stocks with dividend growth rate above 10% (and there are plenty of such stocks e.g. in David Fish CCC list) you can beat IRS in retirement game.
Amen.