In morning trade the Woolworths Group Ltd (ASX: WOW) share price has dropped lower after trading ex-dividend for its latest dividend.
Eligible shareholders can now look forward to receiving the conglomerate's fully franked 57 cents per share final dividend in just under four weeks on September 30.
Whilst some investors may use this as source of income, others may wish to reinvest the proceeds back into the share market.
Here are three shares that I would consider reinvesting these dividends into:
REA Group Limited (ASX: REA)
REA Group is the property listings company behind the realestate.com.au website and a number of international equivalents. I believe it would be a great place to reinvest your dividends due to its increasingly positive long-term outlook thanks to the improvements being seen in the housing market. Given that REA Group delivered robust growth during the downturn, I expect an even stronger performance when listing volumes return to growth. Especially after the company recently increased its prices and has introduced new revenue streams.
ResMed Inc. (ASX: RMD)
ResMed is one of my favourite growth shares on the Australian share market. Over the last decade it has delivered impressive sales and earnings growth thanks to strong demand for its industry-leading products in the fast-growing sleep treatment market. The good news is that due to the estimated large number of sleep apnoea sufferers that are yet to be diagnosed, I believe ResMed still has a significant runway for growth. I feel this could make it a great option for investors in search of buy and hold investments.
Scentre Group (ASX: SCG)
If you're searching for even more dividends then Scentre could be well worth considering. It is the property company which owns the Westfield assets in the ANZ region. Last month it released its half year results and reported a 3% increase in funds from operations (FFO) and a 5% increase in earnings. A key driver of this growth was its sky-high occupancy rate of 99.3%. Pleasingly, more of the same is expected in the second half, with management forecasting FFO per security growth of approximately 3%. It also plans to pay a final distribution of 11.3 cents per security, which equates to a 5.7% yield on an annualised basis.
