It certainly is a big week for income investors with a number of Australia's largest companies scheduled to line the pockets of their shareholders with their latest dividends.
Amongst the large number of companies paying dividends this week are mining giant BHP Group Ltd (ASX: BHP), supermarket operator Coles Group Ltd (ASX: COL), Australia's largest bank Commonwealth Bank of Australia (ASX: CBA), insurer Suncorp Group Ltd (ASX: SUN), and telco giant Telstra Corporation Ltd (ASX: TLS).
Whilst some investors will use these dividends to live from or take advantage of dividend reinvestment plans, others will no doubt look to reinvest the funds back into the share market.
Here's where I would invest them:
CSL Limited (ASX: CSL)
If you're interested in blue chip shares then I think it could be worth considering a long-term investment in this biotherapeutics giant. I continue to believe it is one of the most outstanding companies on the Australian share market and a great long term investment option. This is due to the quality of its management team and the strong growth potential of both its core CSL Behring business and the fledgling Seqirus vaccines business.
LiveTiles Ltd (ASX: LVT)
Investors that are looking for high risk, high reward options for these dividends might want to consider LiveTiles. It is a digital workplace platform provider which aims to simplify processes and enhance productivity through the creation of internal dashboards, intranet portals, and collaborative online working environments. Increasing demand for its platform from blue chip clients including Hungry Jacks, Pepsico, and the Victoria State Government has led to the company reporting stellar annualised recurring revenue growth over the last few years. The good news is that management appears confident this can continue and is targeting ARR of $100 million by the end of June 2021.
Transurban Group (ASX: TCL)
If you're looking for more dividends then this toll road operator could be a good choice. Over the last decade the company has been able to grow its distribution by an average of 11% per annum thanks to its high quality roads, increasing demand, toll increases, and acquisitions and developments. I believe that it is positioned to continue increasing its distribution over the next decade, potentially making it a great long term option. In FY 2020 management intends to grow its distribution by 5.1% to 62 cents per security, which equates to a forward 4.2% forward yield.
