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Where should you invest your Wesfarmers (ASX:WES) dividends?

Wesfarmers share price
Source: WES

On Thursday eligible shareholders of Wesfarmers Ltd (ASX: WES) will be paid the conglomerate’s final dividend.

The Bunnings owner is rewarding shareholders with a fully franked 95 cents per share final dividend, which was up almost 22% year on year.

If you’re planning to reinvest these funds back into the share market, then you might want to consider the shares listed below.

I believe all three of these ASX shares could be great options for these funds. Here’s why I like them:

Bravura Solutions Ltd (ASX: BVS)

If you’re interested in a combination of growth and income, then you might want to take a closer look at Bravura Solutions. It is the financial technology company behind the Sonata wealth management platform and a number of other solutions with large addressable markets. Combined, I believe they have positioned Bravura perfectly for growth over the 2020s. And due to a pullback in its share price, Bravura’s shares currently offer an attractive estimated forward 3.2% dividend yield.

BWP Trust (ASX: BWP)

Investors that are looking purely for more dividends might want to look at BWP. It is a real estate investment trust (REIT) that invests in and manages commercial assets across Australia. The majority of these assets are leased to Wesfarmers’ home improvement business, Bunnings Warehouse. I believe BWP is well-placed to grow its distribution at a solid rate over the next decade thanks to the strength of the Bunnings business. For now, based on the current BWP share price, I estimate that it offers investors a forward 4.4% yield.

PolyNovo Ltd (ASX: PNV)

Finally, if you’re interested in investing these funds into a growth share, then you may want to consider PolyNovo. I think the medical device company has a very bright future ahead of it. This is thanks to its NovoSorb Biodegradable Temporising Matrix (BTM) product. This wound dressing product is designed to treat full-thickness wounds and burns and has a sizeable $1.5 billion addressable market. PolyNovo is also looking to expand its usage into other markets, which would add a further $6 billion to its addressable market.

These 3 stocks could be the next big movers in 2020

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 POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of Wesfarmers 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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