Where I would reinvest my dividends this month

A number of popular dividend shares including the likes of mining giant BHP Billiton Limited (ASX: BHP), private hospital operator Healthscope Ltd (ASX: HSO), and fertility treatment company Monash IVF Group Ltd (ASX: MVF) go ex-dividend this morning for their latest pay outs.

While it may be a few weeks until these dividends are received by eligible shareholders, I think now is as good a time as any to start planning where to reinvest these funds.

Here’s where I would reinvest these dividends:

Growth investors.

If you’re interested in gaining exposure to growth shares then I would suggest you consider taking a look at gaming technology company Aristocrat Leisure Limited (ASX: ALL) and pizza chain operator Domino’s Pizza Enterprises Ltd (ASX: DMP).

I feel both of these shares are changing hands on fair earnings multiples given their positive long-term growth outlook. But if I had to choose just one of them, my pick of the two would have to be Aristocrat Leisure due to the significant potential of its Digital segment.

Income investors.

Investors interested in gaining even more income might want to consider dividend shares such as self-storage giant National Storage REIT (ASX: NSR) and real estate investment fund Rural Funds Group (ASX: RFF).

Both shares offer investors above-average yields right now and I believe they are well positioned to deliver solid dividend growth over the coming years. National Storage’s shares currently provide a trailing 5.7% yield and Rural Funds’ shares offer an attractive trailing 4.7% yield. Both dividends are unfranked.

If I were to pick just one of them, I would go for National Storage at this point. I feel its shares are great value, its yield is generous, and its growth prospects are strong thanks to population growth, downsizing, and acquisition opportunities.

As well as Rural Funds and National Storage, I would consider buying this top dividend share.

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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 Domino's Pizza Enterprises Limited, Monash IVF Group Ltd, and National Storage REIT. 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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