This morning a number of popular shares will trade ex-dividend. This includes the likes of Dicker Data Ltd (ASX: DDR), Elders Ltd (ASX: ELD), Kathmandu Holdings Ltd (ASX: KMD), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), and WAM Capital Limited (ASX: WAM).
While eligible shareholders of these companies may want to use these dividends as a source of income to live from, others will no doubt be looking to reinvest the funds back into the share market once they are paid.
Here are three shares that I would considering reinvesting these funds into:
Accent Group Ltd (ASX: AX1)
The retail sector has been hammered in recent weeks and Accent Group's shares have not escaped the selloff. They are down a sizeable 22% since this time last month. I think the selling has been severely overdone and could have created a buying opportunity for investors. At present Accent Group's shares are trading at under 14x earnings and offer a generous 6% dividend yield. Though, it is worth noting that its AGM is next week and the company is likely to provide a trading update. Investors may want to wait for that release before acting.
Aristocrat Leisure Limited (ASX: ALL)
I think that this gaming technology company's shares are great value at present after a reasonably meaningful pullback from their 52-week high. At present investors can pick up Aristocrat Leisure's shares for around 18x estimated FY 2019 earnings, which I think offers a compelling risk/reward given the company's strong growth potential due to its exposure to a rapidly growing mobile and social gaming market.
National Storage REIT (ASX: NSR)
Investors that are interested in reinvesting these funds into other dividend shares might want to consider National Storage. This real estate investment trust has a wide network of self-storage facilities throughout Australia and New Zealand. I believe its sizeable cash balance will allow it to continue acquiring centres, boosting its income, and ultimately its distribution over the coming years. At present the company's units provide a trailing 5.5% distribution yield.
