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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.

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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.

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