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Where I would reinvest my Commonwealth Bank of Australia (ASX:CBA) dividends

This morning the Commonwealth Bank of Australia (ASX: CBA) share price is likely to drop lower after trading ex-dividend for its $2.31 per share final dividend.

Eligible Commonwealth Bank shareholders can now look forward to receiving this pay out on September 28.

While some shareholders may use this as a source of income to live from, others may want to reinvest the funds back into the share market.

Here are two shares that I would consider reinvesting the money into:

Rural Funds Group (ASX: RFF)

Investors interested in earning even more income from their investments might want to consider this real estate property trust. As its name implies, Rural Funds has a focus on rural assets and owns a diverse portfolio of properties in industries including wine and cattle production. In addition to this, it recently announced the $52.7 million acquisition of Australian feedlots located in Queensland and New South Wales owned by JBS Australia. These facilities have a combined capacity of 150,000 Standard Cattle Units, representing approximately 15% of Australia’s lot fed cattle capability. I expect this to support its earnings and distribution growth for a number of years to come, potentially making Rural Funds a great buy and hold option. Its shares currently offer a trailing 5.2% dividend which is paid in quarterly instalments.

Webjet Limited (ASX: WEB)

I feel investors that are interested in growth shares ought to look at this fast-growing online travel agent. Webjet has been performing impressively well of late thanks to the growing popularity of its numerous brands. They have been growing their bookings at a rate many times the industry average and this trend doesn’t appear to be coming to an end any time soon. Over the next three years management is targeting bookings growth of 3 times the underlying market growth in its business to consumer segment and 5 times the underlying market growth in the business to business segment. I believe the company is capable of delivering on its targets, which should position it for strong long-term growth. This could make it another top buy and hold investment option.

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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 has recommended Webjet 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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