MENU

Where I would reinvest my Telstra Corporation Ltd (ASX:TLS) dividends

This morning Telstra Corporation Ltd (ASX: TLS) shares will go ex-dividend for the telco giant’s fully franked final dividend of 11 cents per share. This dividend will then be paid to eligible shareholders on September 27.

While some shareholders will use this dividend as a source of income to live from, others may wish to reinvest it back into the share market.

Here’s where I would reinvest these funds:

A2 Milk Company Ltd (ASX: A2M)

I thought that a2 Milk Company’s full year results release earlier this month was one of earnings season’s strongest. For the 12 months ended June 30, a2 Milk reported total revenue of NZ$922.7 million and a net profit after tax of NZ$195.7 million. This was an increase of 68% and 116%, respectively, on the prior corresponding period.

While this level of growth is likely to moderate over the coming years, I still believe the company can continue growing at a strong enough rate to justify its shares trading at a premium to the market average. Especially given its relatively small slice of the massive Chinese infant formula market and its growing brand awareness in the region. This should be supported by its expansion into new territories.

CSL Limited (ASX: CSL)

Another top result during earnings season came from this global biotech company. CSL posted a 15% increase in revenue to US$7.6 billion and a 29% jump in net profit after tax to US$1.73 billion. Strong performances from the company’s Immunoglobulins and Specialty businesses were key drivers of the impressive result.

The good news is that these businesses look set to continue their strong form in FY 2019, putting CSL in a position to potentially outperform once again. While its shares are not cheap, I believe it deservedly trades at a premium to the market average and would be a quality long-term buy and hold investment.

Or if you're looking for even more dividends then I would suggest you check out our number one dividend pick for FY 2019.

OUR #1 dividend pick to grow your wealth now is revealed for FREE here!

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 Telstra Limited. The Motley Fool Australia owns shares of A2 Milk. 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…

Including:

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!