It certainly is a big day for income investors on the Australian share market.
A significant number of popular dividend shares go ex-dividend this morning for their latest distributions.
These include the likes of fund manager Magellan Global Trust (ASX: MGG), property manager Mirvac Group (ASX:MGR), storage giant National Storage REIT (ASX: NSR), agriculture-focused investment trust Rural Funds Group (ASX: RFF), airport operator Sydney Airport Holdings Pty Ltd (ASX: SYD), and toll road king Transurban Group (ASX: TCL).
While it may still be a few weeks until these dividends are paid to their respective shareholders, I think now is as good a time as any to plan where to invest these funds.
Two shares I would consider reinvesting these funds into are listed below:
Dicker Data Ltd (ASX: DDR)
Investors that are looking to reinvest these funds into more dividend shares might want to take a look at this founder-led computer software and hardware wholesale distributor. Dicker Data ticks a lot of boxes for me due to its generous dividend, its founders having plenty of skin in the game, and its high-quality and solid business model. This year the company plans to increase its dividend again to 18 cents per share fully franked. This equates to a 6.3% yield.
ResMed Inc. (ASX: RMD)
I think that this sleep treatment company is a great option for investors that are not looking to reinvest the funds back into dividend shares. It has been kicking goals this year and most recently delivered an impressive 32% increase in quarterly profit to US$132.5 million. While its growth will inevitably moderate in the future, I still think it is capable of growing earnings at an above-average rate for some time to come thanks to its market-leading position in a fast-growing industry.
