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Where I would invest my Westpac dividends

This morning Westpac Banking Corp (ASX: WBC) shares will become the latest in the banking sector to trade ex-dividend.

Its 80 cents per share fully franked final dividend will then be paid to eligible shareholders next month on December 20.

If you’re planning to reinvest these funds back into the share market, here’s where I would invest them:

Appen Ltd (ASX: APX)

If you wish to invest these funds into a growth share then I think Appen would be a great option for investors. Especially after a period of share price weakness has left its shares trading at a very attractive level for a long-term investment. I believe the data solutions and services company is capable of generating strong earnings growth and returns for investors over the next decade thanks to its leadership position in the massive artificial intelligence and machine learning markets.

Coles Group Ltd (ASX: COL)

Investors looking for defensive shares with growing dividends might want to consider an investment in Coles. I believe the supermarket giant could be a great long-term investment option. This is due largely to its strong market position and its refreshed strategy. Combined, I believe Coles can deliver solid earnings and dividend growth over the long term. Its shares currently offer an estimated forward fully franked 3.5% dividend yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Finally, another option for those funds could be Sydney Airport. It is one of my favourite dividend shares on the local market. This is due to its position as the main gateway into Australia, its strong pricing power, and the continuing rise in international visitor numbers. Another positive is the recent pickup in domestic tourism. If this is sustained, I believe Sydney Airport will be in a position to continue growing its dividend for the foreseeable future. At present Sydney Airport’s shares offer a trailing 4.3% dividend yield.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of Appen 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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