Later today eligible Suncorp Group Ltd (ASX: SUN) shareholders will be paid the insurance and banking giant's final 10 cents per share fully franked dividend.
While many shareholders will use this for income or take advantage of its dividend reinvestment plan, others may wish to invest the funds back into the share market.
Here's where I would invest these dividends:
a2 Milk Company Ltd (ASX: A2M)
Investors that are interested in putting these funds into a growth share could consider a2 Milk Company. It is a New Zealand-based infant formula and fresh milk company with a focus on A2-only products. Strong demand for its products from the China market and the expansion of its fresh milk footprint have underpinned very strong earnings growth over the last few years.
And while the pandemic is going to stifle its growth this year, I expect it to accelerate again in FY 2022 once market conditions return to normal. Especially given its modest market share in China, its growing distribution in the country, and its sizeable cash balance. The latter gives the company the option of boosting its growth through acquisitions in the future.
Vitalharvest Freehold Trust (ASX: VTH)
If you're looking for more dividends, then you might want to take a look at Vitalharvest. It is an owner of agricultural property assets which have exposure to the nutritious and healthy food trend. Its assets comprise four berry properties and three citrus properties. Some of which are leased to horticulture giant Costa Group Holdings Ltd (ASX: CGC).
Due to the quality of its portfolio, I believe the company is well-placed to grow its income and distribution at a solid rate over the 2020s. For now, based on the current Vitalharvest share price, I estimate that it offers investors a very generous forward ~6% distribution yield.
