Where I would reinvest my BHP Billiton Limited dividend

The BHP Billiton Limited (ASX:BHP) dividend was paid to shareholders today. Here's where I would reinvest it…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This morning the shareholders of BHP Billiton Limited (ASX: BHP) will have received a fully franked 53 cents per share final dividend in their accounts.

While some shareholders will use this as source of income to live from, others may wish to reinvest it back into the market.

Here's where I would consider reinvesting it:

Ramsay Health Care Limited (ASX: RHC)

I think that investors looking for a high quality buy and hold investment option ought to consider this private hospital operator. Its shares have fallen over 15% in the last 30 days due to its weaker-than-expected FY 2018 guidance. While the guidance was admittedly not the strongest, I do feel the sell-off has been severely overdone and left its shares trading at a great price.

Telstra Corporation Ltd (ASX: TLS)

This telecommunications giant's shares have been thoroughly punished this year following concerns over NBN margins and its decision to cut its dividend in FY 2018. Whilst this was a big disappointment, I believe all the bad news has been priced into its shares now. This could make it an opportune time to snap up its shares in my opinion. Especially as at the current share price they will provide investors with a fully franked 6.2% dividend in FY 2018.

Galaxy Resources Limited (ASX: GXY)

Finally, investors looking to regain exposure to the resources sector could consider this leading lithium miner. Due to the rising demand for lithium carbonate to be used in the batteries of electric vehicles and renewable energy, I expect Galaxy to be in a position to deliver high levels of free cash flow over the next few years. I think it is quite likely that this will find its way back to shareholders in the form of dividends.

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of Telstra Limited. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »