Where I would invest my Wesfarmers Ltd dividends

This morning eligible Wesfarmers Ltd (ASX: WES) shareholders are due to receive the retail conglomerate’s fully franked $1.03 per share interim dividend.

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

Here are three shares that I would consider investing these funds into:

Dicker Data Ltd (ASX: DDR)

Investors looking for more income in the future might want to consider this founder-led computer software and hardware wholesale distributor. As well as being a generous dividend payer, the company pays its dividend in quarterly instalments. This makes it a great option for income investors in my opinion. In FY 2018 management expects Dicker Data to deliver a 6% increase in earnings and grow its dividend 10% year-on-year to 18 cents per share. This equates to a forward fully franked 6.3% yield based on its current share price.

Nextdc Ltd (ASX: NXT)

I think that investors looking to gain exposure to growth shares ought to consider this data centre operator. Although NEXTDC’s shares are looking quite expensive, I remain confident that demand for its world-class centres is growing at such a strong rate that it will easily justify the premium. Especially given how the seismic shift to the cloud and data consumption continues to accelerate.

Rio Tinto Limited (ASX: RIO)

Any investors that want a little exposure to the resources sector could do a lot worse than this mining giant. With the global economy growing strongly, I expect demand for the commodities it produces will remain robust and support favourable prices. This should put Rio Tinto in a position to deliver solid earnings and dividend growth for the next couple of years at least. Another bonus is its sizeable cash balance following its exit from the coal industry. This is likely to be returned to shareholders through dividends and share buybacks.

Finally, if you like Dicker Data for its dividend then you'll love this top dividend share.

OUR #1 dividend pick to buy in April is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Wesfarmers 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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!