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Where I would reinvest my Westpac dividends

As I mentioned here earlier, eligible Westpac Banking Corp (ASX: WBC) shareholders can look forward to being paid the banking giant’s fully franked 94 cents per share interim dividend later today.

Whilst many investors will use these funds as a source of income and others may take advantage of the bank’s dividend reinvestment plan, some investors will no doubt look to invest these dividends bank into the share market.

Here’s where I would invest the funds:

Collins Foods Ltd (ASX: CKF)

I think that Collins Foods could be a good place to consider reinvesting these funds. It is a quick service restaurant operator best-known for its network of KFC restaurants across Australia, Europe, and New Zealand. It also operates 85 Sizzler restaurants predominantly in Asia and has just commenced the roll out of the Taco Bell brand across several Australian states following a successful trial period in Queensland. Overall, I think its shares offer investors a good combination of growth, income, and value. In respect to the latter, this is especially the case today after last week’s share price pullback following the announcement of the retirement of its CEO next year.

Dicker Data Ltd (ASX: DDR)

If you’re looking for even more dividends then Dicker Data could be worth considering. It is a leading distributor of information technology products across Australia and New Zealand which has been growing at solid rate over the last few years. This has allowed the Dicker Data board to grow its dividend materially over the same period, much to the delight of its shareholders. And thanks to its positive outlook and the recent launch of the Dicker Data Financial Services business, I believe this dividend could continue growing at a good rate over the next decade. At present its shares offer a forward fully franked 4.5% dividend yield.

Webjet Limited (ASX: WEB)

Investors that are interested in growth shares might want to check out Webjet. I think the leading online travel agent is one of the best growth shares on the local market and, importantly, is trading at an attractive level given its current growth profile. This is thanks to its B2B and B2C brands which I believe are well-placed for strong long-term bookings growth due to the continued shift to online travel booking and their increasing popularity with consumers.

Is Westpac the best bank to own right now? You can find out here.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended Collins Foods Limited and Webjet Ltd. 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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