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Where to invest your NAB dividends

Later this morning National Australia Bank Ltd (ASX: NAB) shares will trade ex-dividend.

The banking giant’s 83 cents per share fully franked final dividend will then be paid to eligible shareholders on December 12.

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

Altium Limited (ASX: ALU)

Investors looking at investing these funds into growth shares might want to consider Altium. I think it is one of the best growth shares the local share market has to offer. This is thanks to its leading position in a printed circuit board design market which looks set to grow materially over the next decade. Printed circuit boards are the small circuit boards you’ll find in most modern electronic devices. Demand for design software is growing at a very strong rate due to the rapidly growing Internet of Things market.

Helloworld Travel Ltd (ASX: HLO)

If you’re interested in a combination of growth and income then this integrated travel company could be the one for you. It was a solid performer in FY 2019 and looks well-placed to repeat this in the new financial year. Last month it released its first quarter update and revealed total transaction value of $1.878 billion and unaudited EBITDA $24.7 million. This was a 10.4% and 7.7% increase, respectively, on the prior corresponding period. Management appears confident this form will continue over the remainder of FY 2020. Which should put Helloworld in a position to lift its dividend again. At present its shares offer a trailing fully franked 4.7% dividend.

Transurban Group (ASX: TCL)

Investors looking for another source of income could consider Transurban. I think the toll road operator is one of the best dividend shares on the local market. This is due to its world-class portfolio, defensive qualities, solid growth potential, and long track record of distribution increases. Its units currently offer a forward 4.1% distribution yield.

Where to invest $1,000 right now

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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 Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Transurban Group. The Motley Fool Australia owns shares of Altium and National Australia Bank Limited. The Motley Fool Australia has recommended Helloworld Limited. 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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