On Wednesday the shares of Telstra Corporation Ltd (ASX: TLS) went ex-dividend for the telco giant's 11 cents per share interim dividend.
Eligible shareholders can now look forward to receiving this dividend into their nominated accounts on March 29.
While some shareholders will no doubt use these funds as income to live from, others may wish to reinvest the funds back into the market.
With that in mind, here are two top shares which I would look to invest this dividend into:
BHP Billiton Limited (ASX: BHP)
Investors that are looking for even more dividends might want to consider this mining giant's shares. Although its half-year earnings fell a touch short of the market's bullish expectations, the sizeable interim dividend increase was a pleasant surprise. The good news is that I think that management may be in a position to do likewise for its final dividend in August thanks to the positive outlook for global economic growth and the demand for commodities that should follow. Based on the current share price BHP Billiton provides income investors with a generous trailing fully franked 4.1% dividend.
Nextdc Ltd (ASX: NXT)
Investors that are interested in making a buy and hold investment in a growth share might want to consider the high-flying shares of NEXTDC. I was thoroughly impressed with the data centre operator's half-year results and expect more of the same in the second-half and beyond thanks to the strong tailwinds being experienced from the rise of cloud computing. After a strong first-half which saw half-year EBITDA rise 41% on the prior corresponding period to $33.6 million, NEXTDC upgraded its full-year EBITDA guidance to between $58 million and $62 million. Considering the company is in advanced negotiations in relation to several large customer opportunities which have the potential to result in a significant increase in the company's contracted utilisation base, I think there's a strong chance that NEXTDC could outperform expectations.
