Roth and IRA dividend stratagy?

[ripvanwinkle]

On my way home late last Saturday night I was running the radio dial and I came upon the tail end of a guy calling into a "financial" show and he was saying he invests his Roth with only dividend paying stocks/funds and his IRA with only stocks/funds that don't pay dividends. He said that if he put the dividend stocks/funds in the Roth when he retires he won't have to pay taxes but if he put them in the IRA he would. 

I didn't hear the host of the show answer him because I pulled into my driveway about then and went into the house. That really didn't make any sense to me but it did make me think. Was there something to this guys thinking or is he just not informed?

[Value Buy]

I am not quite sure.
In my mind he is stocking his IRA with stocks that are considered growth stocks, which do not pay dividends which in his mind if successful, will grow at a higher percentage rate than dividend stocks, but this increases your fund faster than just dividend reinvestments strategy. Sometimes it does, not always, as you have to consider dividend reinvestment over decades buying more shares which also increase in value via cost per share.
I guess it depends whether one strategy does not gain as many dollars as the other.
IMO, this defeats the purpose of investing. You want as much increase in value as you can get and one strategy, if correct, holds you back.
On the other hand, it is a type of diversity to protect the portfolio.
My only regret was we never opened a Roth account due to family need of available money and the fact we invested heavily into our 401-k's in our later years and IRA's in the earlier years before roths came available. We should have opened roth accounts when they started and cut the 401-k percentage we invested and do both types.