On Wednesday the Commonwealth Bank of Australia (ASX: CBA) share price traded ex-dividend for its fully franked 98 cents per share final dividend.
This means that eligible shareholders can now look forward to receiving this dividend in their nominated accounts on 30 September.
While many shareholders will use this for income, some are likely to want to reinvest the funds back into the share market.
Here's where I would invest these dividends:
Altium Limited (ASX: ALU)
If you're looking to invest these funds into a growth share, then I think Altium would be a fantastic option. I believe the electronic design software provider has the potential to generate strong returns for investors over the next decade thanks to its exposure to the growing Internet of Things and artificial intelligence markets.
These markets are supporting the proliferation of electronic devices globally and driving strong demand for software subscriptions and the services of its other businesses. Management remains confident on its outlook and reaffirmed its expectation to achieve revenue of US$500 million in five to six years. This compares to FY 2020's revenue of US$189 million.
BWP Trust (ASX: BWP)
Investors that are on the lookout for even more income might want to consider BWP Trust. It is the largest owner of Bunnings properties in the Australian market with 68 warehouses leased to the home improvement giant. Bunnings has proven to be a fantastic tenant for BWP, particularly during the pandemic. At a time when many property companies are posting heavy declines in profits and property valuations, BWP is growing both.
In its FY 2020 full year results the company revealed a 1% increase in profit before gains on investment properties to $117.1 million. Including property gains, BWP's profit was up 24.4% to $210.6 million. This put the company in a privileged position to be able to increase its distribution in FY 2020 despite the crisis. In FY 2021, the company expects to pay shareholders a distribution in the region of 18.29 cents per unit. This works out to be an attractive 4.6% yield.
