Where I would reinvest my dividends

It certainly is a big day for income investors on the Australian share market.

A significant number of popular dividend shares go ex-dividend this morning for their latest distributions.

These include the likes of fund manager Magellan Global Trust (ASX: MGG), property manager Mirvac Group (ASX:MGR), storage giant National Storage REIT (ASX: NSR), agriculture-focused investment trust Rural Funds Group (ASX: RFF), airport operator Sydney Airport Holdings Pty Ltd (ASX: SYD), and toll road king Transurban Group (ASX: TCL).

While it may still be a few weeks until these dividends are paid to their respective shareholders, I think now is as good a time as any to plan where to invest these funds.

Two shares I would consider reinvesting these funds into are listed below:

Dicker Data Ltd (ASX: DDR)

Investors that are looking to reinvest these funds into more dividend shares might want to take a look at this founder-led computer software and hardware wholesale distributor. Dicker Data ticks a lot of boxes for me due to its generous dividend, its founders having plenty of skin in the game, and its high-quality and solid business model. This year the company plans to increase its dividend again to 18 cents per share fully franked. This equates to a 6.3% yield.

ResMed Inc. (ASX: RMD)

I think that this sleep treatment company is a great option for investors that are not looking to reinvest the funds back into dividend shares. It has been kicking goals this year and most recently delivered an impressive 32% increase in quarterly profit to US$132.5 million. While its growth will inevitably moderate in the future, I still think it is capable of growing earnings at an above-average rate for some time to come thanks to its market-leading position in a fast-growing industry.

OUR #1 dividend pick for JULY 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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited, RURALFUNDS STAPLED, Sydney Airport Holdings Limited, and Transurban Group. The Motley Fool Australia has recommended National Storage REIT and ResMed Inc. 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!