The Commonwealth Bank of Australia (ASX: CBA) share price tumbled lower yesterday as its shares went ex-dividend for the bank's final dividend of $2.30 per share fully franked.
This dividend is expected to be paid into shareholders' accounts on September 29.
Whilst many investors will use the bank's dividend as income to live from, others will no doubt look to reinvest it back into the share market.
Here's where I would reinvest this dividend:
CSL Limited (ASX: CSL)
Investors looking for long-term growth could consider an investment in biotherapeutics giant CSL. Yesterday the company's shares fell slightly after its FY 2018 guidance fell a touch short of expectations. CSL expects net profit after tax to be in the range of approximately $1,480 million to $1,550 million in constant currency terms next year. At the high end of its guidance it would mean profit growth of 16% year-on-year. Despite the negative reaction by the market, I believe this level of growth makes CSL a great option at the current share price.
Mantra Group Ltd (ASX: MTR)
Investors in search of more dividends could do a lot worse than this leading accommodation provider. Thanks to the tourism boom that Australia is experiencing and the recent acquisition of the Art Series hotel chain, I believe Mantra is in a strong position to deliver above-average earnings growth for the foreseeable future. I expect this will allow the company to grow its dividend at a strong rate as well. Mantra's shares currently provide investors with a trailing fully franked 3.5% dividend.
