Where to reinvest your National Australia Bank Ltd (ASX:NAB) dividends today

Credit: NAB

Later today eligible shareholders of National Australia Bank Ltd (ASX: NAB) will be paid the banking giant’s interim dividend of 99 cents per share.

While some shareholders may 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 this dividend into:

A2 Milk Company Ltd (ASX: A2M)

Investors interested in growth shares may want to consider this infant formula and dairy company. Its shares have come under pressure recently after its full-year sales guidance came in a little softer than expected, but there’s no denying that its sales growth is still explosive. I think the selloff has brought its shares down to a level that is attractive for investors willing to make a patient buy and hold investment.

Cochlear Limited (ASX: COH)

Another great buy and hold investment option could be this leading hearing solutions company. Although its shares are a little on the expensive side and carry a fair bit of risk, I remain confident that Cochlear is positioned perfectly to deliver solid earnings growth over the next decade that justifies the premium. This is because the company is a leader in a fast-growing hearing solutions market and likely to benefit greatly from ageing populations across the globe.

Rural Funds Group (ASX: RFF)

Any NAB shareholders in search of more dividends might want to consider Rural Funds. It is a real estate investment trust with a focus on agricultural assets. I’m a fan of the company’s diverse asset base and the lengthy tenancy agreements it has in place. With an average of 12.5 years to run, I believe this provides great visibility on its future earnings and dividend. At present its shares provide a trailing yield of 4.9%.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

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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 RURALFUNDS STAPLED. The Motley Fool Australia owns shares of A2 Milk and National Australia Bank Limited. The Motley Fool Australia has recommended Cochlear Ltd. 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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