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I have a rollover IRA from an old job's 401k. I have had it sitting uninvested (where it's outperforming my new job's 401k) and I want to start investing it on my own.

If I put a stock that pays a dividend into my IRA, where does the dividend go? Back into the IRA to be reinvested? Paid out to me?

Is the dividend taxed in either of those situations?

The account is with E*TRADE.

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The dividend goes into the IRA (either reinvested automatically or remains as cash until you invest it, per your choice). You're not taxed on this dividend (IRA is a taxed-deferred account - you're taxed on the distributions, but not on the capital gains within the account).

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