Later today eligible Rio Tinto Limited (ASX: RIO) shareholders will receive the mining giant's fully franked interim dividend of 307.58 cents per share.
Whist some investors will use this as a source of income and others may use its dividend reinvestment plan, some will no doubt look to invest the funds back into the share market.
Here's where I would reinvest these funds:
Altium Limited (ASX: ALU)
If you're interested in growth shares then I would suggest you consider this provider of printed circuit board (PCB) design software. Altium has been one of the standout performers on the ASX over the last few years and appears well-placed to continue its strong form for many more years to come. This is due to its exposure to the Internet of Things market which continues to grow at a rapid rate. As the majority of connected devices require PCBs inside them to function, demand for Altium's software looks set to continue to increase and drive strong profit growth as it scales.
Cochlear Limited (ASX: COH)
Another top share to consider is Cochlear. It manufactures and distributes industry-leading cochlear implantable devices for the hearing impaired globally. I think it could be a great long-term investment option due to its leadership position in a structural growth market which has high barriers to entry and attractive demographics. Overall, I feel this has positioned the company to continue being a market beater over the next decade, potentially making it a good option for your Rio Tinto dividends.
Telstra Corporation Ltd (ASX: TLS)
If you're looking for even more dividends then I feel that Telstra would be a good option for these funds. The telco giant may have had a tough couple of years, but I believe things are finally starting to improve now that the end of the NBN rollout is in sight and competition in the industry has become more rational. In addition to this, the arrival of 5G could be a big boost to its earnings in the coming years, especially given its leadership position. At present Telstra's shares offer investors a fully franked 4.5% dividend yield.
