I have CODI in my SRA through work, and I've collected 2 dividends so far. One of them I kept as cash and reinvested in other securities. The other I told them to re-invest.
As far as taxes, it depends on the type of IRA you have. If it's a ROTH, you get the dividends tax free. If it's traditional, it's taxed. All of this happens on / after retirement however, as you take your distributions. If you withdraw early, I believe there is a penalty no matter which type you have. I only have a ROTH, and I'm allowed to take out as much as I've invested for the year without penalty (eg, I have to leave all gains alone).