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Where to reinvest your Fortescue (ASX:FMG) dividends

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Today is payday for eligible shareholders of mining giant Fortescue Metals Group Limited (ASX: FMG). This morning the company paid shareholders a fully franked interim dividend of $1.47 per share. Based on the latest Fortescue share price of $19.22, this represents a very generous 7.6% yield.

While some shareholders will be using this as a source of income, others may wish to invest it into the share market. If you’re in the latter group, then you might want to consider one of these ASX shares. Here’s why they are rated highly:

Altium Limited (ASX: ALU)

The first share to look at is Altium. It is a printed circuit board design software provider which has a leadership position in a market exposed to the Internet of Things and artificial intelligence. These two technologies are underpinning the proliferation of electronic devices globally, which is expected to lead to increasing demand for printed circuit board design software over the next decade.

Analysts at Morgan Stanley are positive on the company. So much so, they have an overweight rating and $37.00 price target on its shares. This compares to the latest Altium share price of $26.94.

Cochlear Limited (ASX: COH)

Another ASX share to consider investing these dividends into is Cochlear. It is one of the world’s leading hearing solutions companies and has a very long track record of delivering solid earnings growth. And while the pandemic has been weighing on its performance, its strong first half result appears to show that the situation is easing. In light of this, the ageing populations tailwind, and its industry leading products, the future looks very bright for Cochlear.

Macquarie is a fan of the company. Last month its analysts put an outperform rating and $245.00 price target on its shares. This compares favourably to the current Cochlear share price of $213.15.

Where to invest $1,000 right 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.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

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 Cochlear Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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