On Wednesday banking giant Commonwealth Bank of Australia (ASX: CBA) will pay out approximately $3.4 billion to eligible shareholders in the form of its interim dividend.
This equates to a fully franked $2.00 per share, an increase of 1 cent per share on the prior corresponding period.
Whilst some shareholders will use this as a source of income or utilise the bank's dividend reinvestment plan to gain more shares in the bank, others may wish to reinvest the funds back into the market elsewhere.
Three shares which I would look to buy with these funds are listed below.
BWX Ltd (ASX: BWX)
Investors interested in growth shares might want to consider the company behind the Sukin skin care range after its post-earnings slide. Although its half-year results came in weaker than expected, I believe the sell-off that ensued has been overdone. With demand for its type of products forecast to grow strongly over the next decade, I think BWX could prove to be a great buy and hold investment option.
Dicker Data Ltd (ASX: DDR)
If you are looking for even more dividends then I think Dicker Data could be a great option. In FY 2018 the wholesale computer software and hardware distributor plans to pay shareholders an 18 cents per share fully franked dividend in quarterly instalments. Based on its last close price, this means that Dicker Data's shares provide a forward fully franked 6.2% yield.
Rio Tinto Limited (ASX: RIO)
Investors looking for exposure to the resources sector might want to consider Rio Tinto. Although Trump's tariff moves have surprised markets and impacted commodity prices, I believe things will blow over eventually and the global economy will push on. This should lead to improvements in commodity prices and the profit growth of Rio Tinto. In addition to this, I suspect the recent offloading of its coal assets could lead to the mining giant returning money to shareholders.
