Later today eligible shareholders of Flight Centre Travel Group Ltd (ASX: FLT) will be paid the global travel agent giant's latest dividends.
Flight Centre is due to pay a fully franked $0.60 per share interim dividend and a fully franked $1.49 per share special dividend.
Based on its last close price, these dividends alone equate to a very generous yield of 4.9%.
As the company doesn't currently have a dividend reinvestment plan, shareholders will have to decide what to do with these funds.
Where should you invest these dividends?
Flight Centre's shares have come under pressure this year and are down over 39% from their 52-week high due to concerns over its Australian Leisure business.
In light of this recent share price weakness, I think reinvesting the funds back into the company's shares is worth considering.
But if you want to diversify your holdings then these shares could be the ones to buy:
Domino's Pizza Enterprises Ltd (ASX:DMP)
This pizza chain operator's shares could be worth considering if you're prepared to make a buy and hold investment. Whilst its performance has been mixed over the last couple of years, if it delivers on its plan to double its store network within the next 6-8 years then I expect it to lead to strong returns for shareholders.
ResMed Inc (ASX: RMD)
Another growth share to consider investing these dividends into is this medical device company. It has a portfolio of cloud-connected devices which care for people with sleep apnoea, chronic obstructive pulmonary disease, and other chronic diseases. The sleep treatment market is tipped to grow strongly over the next decade, which I believe puts ResMed in a position to continue growing its earnings at an above-average rate for some time to come.
Rural Funds Group (ASX: RFF)
If you're looking for more dividends then this agriculture-focused real estate property trust could be a great option. I'm a big fan of the company due to its high quality asset portfolio and long term leases. Its units currently offer income investors a 4.9% forward distribution yield.
