Where to reinvest your ANZ dividends

Here's where I would reinvest my Australia and New Zealand Banking Group (ASX:ANZ) dividends…

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This morning Australia and New Zealand Banking Group (ASX: ANZ) shares will trade ex-dividend for the bank's 80 cents per share partially franked final dividend.

Eligible shareholders can then look forward to receiving this dividend just in time for Christmas on December 18.

While some shareholders may use this as a source of income, others may wish to reinvest these funds back into the share market.

If that's you then here are three top shares which I would buy with these funds:

Accent Group Ltd (ASX: AX1)

If you'd like to turn your ANZ dividends into even more dividends then I think Accent Group would be worth considering. It is a footwear-focused retail group which owns a number of popular retail store brands such as Athlete's Foot, HYPE DC, and Platypus. Although trading conditions have been tough, it has still managed to deliver solid growth over the last couple of years. I'm confident there will be more of the same this year, allowing Accent to lift its dividend again. I estimate that its shares offer a forward fully franked 5.6% dividend yield.

REA Group Limited (ASX: REA

If you're interested in growth shares then I feel this property listings company would be a good option. Last week the REA Group share price tumbled lower following the release of its first quarter update. Although a soft quarter was largely expected by the market, it ended up being far softer than forecast. However, the company appears confident that trading conditions will improve in the near future thanks to recent house price increases. I agree with this and feel now would be a good time to make a patient long-term investment.

Scentre Group (ASX: SCG)

Another good dividend option to consider for your ANZ dividends is Scentre Group. It is the owner of the Westfield properties in the ANZ region. Over the last 12 months its centres have welcomed 535 million customer visits through their doors. This has led to strong demand for tenancies from retailers, helping drive Scentre Group's occupancy rate to a lofty 99.3%. Given the quality of its centres, I expect this trend to continue for a long time to come. Which should put Scentre in a good position to grow its distribution at a modest rate in the future. At present its units offer an estimated forward 5.8% distribution yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group, REA Group Limited, and Scentre Group. 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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