On Thursday morning shareholders of a number of blue chip shares including Brambles Limited (ASX: BXB), Cochlear Limited (ASX: COH), Qantas Airways Limited (ASX: QAN), Rio Tinto Limited (ASX: RIO) received their respective interim or final dividends into their nominated accounts.
While some of these shareholders will use these dividends as a source of income to live from, others will no doubt be looking to reinvest the funds back into the share market.
Here are three shares that I would be investing these funds into:
BHP Billiton Limited (ASX: BHP)
Investors that are interested in gaining exposure to the resources sector might want to consider mining giant BHP Billiton. I believe its shares are great value right now, especially given the favourable outlook for the key commodities that it produces. While a trade war could stunt global economic growth and lessen demand for commodities, I remain confident that a crisis will be averted. This should allow BHP Billiton to continue its fine form and deliver bumper profits for at least the next couple of years. Another bonus with BHP Billiton is that its shares offer investors a trailing fully franked 4.1% yield.
ResMed Inc. (CHESS) (ASX: RMD)
I think that this healthcare company which specialises in the treatment of sleep apnoea and other chronic respiratory diseases would be a great option for investors. Due to ResMed's position as a leader in a market that is expected to grow meaningfully over the next decade, I think it is capable of continuing its strong earnings growth for some time to come. In the first half of FY 2018 ResMed grew its non-GAAP income by 39% on the prior corresponding period to US$143.8 million.
Telstra Corporation Ltd (ASX: TLS)
Investors that are in search of even more dividends might want to consider this telco giant's shares. In early trade on Thursday Telstra's shares have drifted to yet another multi-year low. While I'm not convinced that they have bottomed just yet due to the weak investor sentiment, I do think an investment at the current share price offers a compelling risk/reward. Telstra intends to pay a 22 cents per share dividend to shareholders in FY 2018 and FY 2019. This equates to a generous fully franked yield of over 7.1% at the current price.
