Yesterday the BHP Billiton Limited (ASX: BHP) share price dipped after its shares went ex-dividend. This means that investors which owned the mining giant's shares at the market close the day before can look forward to receiving a 52 cents per share fully franked dividend on March 28.
Whilst some investors may use this dividend as a source of income, others may want to reinvest it back into the market. Here are three shares that I would reinvest this dividend into:
a2 Milk Company Ltd (Australia) (ASX: A2M)
Thanks partly to the growing popularity of its products with Chinese consumers, this fast-growing dairy company recently reported a massive 290% increase in half-year net profit after tax to NZ$39.4 million. Despite Bellamy's Australia Ltd (ASX: BAL) struggles in the region, a2 Milk's sales in its China and Asia segment rose a whopping 348% during the period. Whilst I believe China will remain its key market, there are significant opportunities for the company in the U.K. and U.S. markets as well.
Corporate Travel Management Ltd (ASX: CTD)
Like a2 Milk, Corporate Travel Management also recently delivered another strong half-year result. Revenue rose 26% to $150.5 million and statutory net profit jumped 28% to $22.1 million during the period. Thanks partly to a strengthening U.S. economy and the mining recovery in Australia, I expect more of the same in the second-half. This could make it an opportune time to invest in the corporate travel specialist.
Ramsay Health Care Limited (ASX: RHC)
With demand for this private hospital operator's services expected to grow strongly over the next decade due to ageing populations and increased chronic disease burden, I believe Ramsay would be a great buy and hold investment. Whilst its shares may not be cheap at 28x trailing earnings, I believe the quality of the business and its growth prospects more than justify the premium.
