Motley Fool Australia

Where to invest your Telstra (ASX:TLS) dividends

dividend chart increasing

If you’re an eligible Telstra Corporation Ltd (ASX: TLS) shareholder, earlier today you should have been paid the telco giant’s fully franked 8 cents per share final dividend.

While many shareholders will be using these funds as a source of income (particularly in this low interest rate environment), others may plan to reinvest these dividends back into the share market.

If you’re in the latter group, here are two top ASX shares that I would invest these funds into:

Dicker Data Ltd (ASX: DDR)

If you’re on the lookout for even more dividends, then you might want to take a look at Dicker Data. It is the leading wholesale distributor of computer hardware and software across the ANZ region. I believe Dicker Data is well-placed to continue its growth over the next decade thanks to its strengthening market position, growing vendor agreements, and positive tailwinds. In addition to this, the company is currently constructing a new distribution centre. This will give Dicker Data significant room to expand its operations and boost its revenue once complete. 

In FY 2020 the company is aiming to lift its dividend by 31% to 35.5 cents per share. Based on the current Dicker Data share price, this represents a generous fully franked 4.6% dividend yield. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another option to consider reinvesting your Telstra dividends into is the BetaShares NASDAQ 100 ETF. As its name implies, this ETF gives investors exposure to 100 of the largest non-financial companies listed on the famous Nasdaq index.

Among its holdings you’ll find some of the biggest and brightest companies in the world and those at the forefront of the new economy. This includes giants such as Amazon, Apple, Facebook, Microsoft, and Netflix. Another positive is that the ETFs strong focus on technology gives investors diversified exposure to a high-growth potential sector that is under-represented on the Australian share market. Given the quality of the companies included in the ETF, I believe it can outperform the ASX 200 over the long term.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra Limited. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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.

Related Articles...