The Motley Fool

Where to invest your Rio Tinto dividends today

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.

And if you're looking for even more dividends then check out these buy-rated dividend shares which offer generous and growing yields.

NEW! Top 3 Dividend Bets for 2020

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium and Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Cochlear 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.