Investors set for $19 billion dividend windfall: Where I would reinvest these funds

This month a record $18.9 billion worth of dividends is expected to be paid to Australian investors according to Bell Potter.

Over two-thirds of these payouts will be made this week when the likes of BHP Billiton Limited (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS) reward their respective shareholders.

If you’re a shareholder and plan to reinvest these funds back into the market, here are three shares that I would consider buying:

Aristocrat Leisure Limited (ASX: ALL)

Investors interested in growth shares might want to consider Aristocrat Leisure. I think the leading gaming technology company is one of the best growth shares on the local market and trading at a very attractive price. Thanks to the company’s strong core business and growing digital segment, I believe it is positioned perfectly to deliver above-average earnings growth for some time to come. At present the company’s shares are changing hands at 26x estimated full year earnings.

Helloworld Travel Ltd (ASX: HLO)

I think that this integrated travel company offers investors a great mix of growth and income. In FY 2018 Helloworld posted an impressive 48.1% increase in full year profit after tax to $32 million and grew its dividend to 18 cents per share. The latter equates to a fully franked yield of 3.2% based on its last close price. Pleasingly, with management expecting earnings growth of up to 23% in FY 2019, I believe this dividend could see another notable increase again this year.

National Storage REIT (ASX: NSR)

If you’re interested in turning these funds into even more dividends then I would suggest you take a look at this real estate investment trust with a focus on self-storage assets. A combination of solid demand and acquisitions led to National Storage posting a 12.5% increase in underlying earnings to $51.4 million in FY 2018. This allowed the National Storage board to declare a distribution of 9.6 cents per unit, which equates to a trailing 5.6% distribution yield. I expect more of the same in FY 2019 thanks to its high occupancy levels and acquisition plans.

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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 Telstra Limited. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended 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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