Where should you invest your Commonwealth Bank of Australia dividends?

Today is the day Australia’s largest bank Commonwealth Bank of Australia (ASX: CBA) pays out its fully franked final dividend of $2.22 per share.

Whilst for some investors it will be a source of income to live on, a decent portion of the almost $4 billion pay out will no doubt find its way back into the market. But where should this money be reinvested?

These four shares could be a great start:

Bellamy’s Australia Ltd (ASX: BAL)

Considering its strong growth prospects this organic infant formula producer looks like a bit of a bargain to me right now. Changing hands at just 18x estimated FY 2017 earnings, Bellamy’s is a buy as far as I’m concerned. In August the company produced a stunning 322% increase in net profit to $38.3 million. Thanks to an insatiable demand for its products from the China market, strong earnings growth is expected again in FY 2017.

Freelancer Ltd (ASX: FLN)

Freelancer owns and operates the world’s largest outsourcing marketplace and had over 20 million registered users and 9.6 million projects posted on its platform as of July 2016. One thing I like in particular about Freelancer is the variety of jobs it has listed. There really is something for everyone on its marketplace with listings for everything from content marketing to astrophysics. One negative is the fact that the company has yet to make a profit. But following a strong half year result I am confident the company could profitable by the end of its financial year.

Orora Ltd (ASX: ORA)

Since Orora spun-off from packaging giant Amcor Limited (ASX: AMC) in 2013 its shares have risen an incredible 155%. It’s not hard to see why when you look at how well the company is performing. This year Orora posted an impressive 23.8% increase in full year underlying net profit after tax, despite subdued economic conditions in Australia and North America. With roughly half of its revenue coming from North America, I expect Orora to get an extra boost to earnings when the Fed raises rates in the US and this causes the Australian dollar to weaken.

Range International Ltd (ASX: RAN)

Range hasn’t been listed on the ASX for very long, but has certainly caught my eye during this time. The company is a manufacturer of plastic pallets and has developed its ThermoFusion technology to allow it to make plastic pallets from 100% recycled mixed waste plastic at a price that is competitive with wood pallets. Just this week Range advised that it had ordered the installation of an additional six production lines at its factory in East Java. Combined with two production lines previously ordered, this will bring the number of production lines to 10. I see this huge increase in production capacity as a positive sign that the company is performing ahead of expectations.

Alternatively, these rapidly growing shares could be great options for investors today as well. Each has strong earnings and dividend growth, as well as the potential to bolt higher in the months ahead if you ask me.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Bellamy's Australia. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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