If you're an eligible shareholder of Commonwealth Bank of Australia (ASX: CBA), then later today you should be receiving the banking giant's fully franked 98 cents per share final dividend.
While I suspect that a good portion of shareholders will be using these funds as a source of income, there may be some which wish to reinvest these dividends back into the share market.
If you're part of the latter group, then here's where I think you should consider investing these funds:
Accent Group Ltd (ASX: AX1)
If you're looking to turn these dividends into even more dividends, then you might want to take a look at Accent Group. It is a footwear-focused retail group which owns store brands such as HYPE DC and Platypus. It has been growing its earnings and dividends at a solid rate over the last few years. Pleasingly, this even continued during the pandemic thanks to the popularity of its brands, its strong market position, and particularly its growing online business.
I'm confident there will be more of the same over the coming years, especially given its expansion plans. In FY 2021 I'm expecting Accent to pay a 9 cents per share fully franked dividend. Based on the current Accent share price, this means investors will receive a generous 5.4% dividend yield.
Altium Limited (ASX: ALU)
Altium is a leading electronic design software company best-known for its eponymous Altium Designer product. This software allows engineers to design the complex printed circuit boards that are found in almost all electronic devices.
Demand for its software is expected to rise strongly in the coming years thanks to the rapidly growing Internet of Things and artificial intelligence markets. This is because these two markets are underpinning the proliferation of electronic devices globally. Management appears confident in its growth trajectory. It is aiming to grow its revenue to US$500 million by 2025-2026. This will be an increase of over 150% from the revenue of US$189 million it achieved in FY 2020.
