On Tuesday eligible shareholders of Woolworths Group Ltd (ASX: WOW) will be paid the conglomerate's fully franked 48 cents per share final dividend.
If you're planning to reinvest these funds back into the share market, then I would suggest you consider the ASX shares listed below.
Here's why I think they would be top options for your Woolworths dividends:
Cochlear Limited (ASX: COH)
If you're looking to invest these funds into a growth share, then you might want to take a closer look at Cochlear. It is one of the world's leading hearing solutions companies with a growing portfolio of high quality implantable devices.
I believe Cochlear is well-positioned for growth over the next decade and beyond thanks to the extremely favourable shift in demographics globally. According to the World Health Organization, by 2050 there are forecast to be 1.5 billion people over the aged of 65. This will be almost triple the number of over 65s in 2010. I expect this to lead to growing demand for its hearing products and underpin solid earnings growth in the future.
Commonwealth Bank of Australia (ASX: CBA)
If you're wanting even more dividends, then I would suggest you consider buying this banking giant's shares. Although the pandemic is certainly hitting the bank hard, I'm confident the provisions it has made will be sufficient. This could mean that the worst is now over for Commonwealth Bank and it is onwards and upwards from here.
Another big positive is the recent news that responsible lending rules will be relaxed. I expect this and a jobs-focused Federal Budget to be a big boost to the banks and could put them on a path to return to growth in the not so distant future. Estimating what dividend the bank will pay is difficult, but I would expect something in the region of 4% fully franked in FY 2021.
