This morning the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is likely to trade lower after going ex-dividend for its 19 cents per share final dividend.
While some shareholders may use this dividend as a source of income, others may wish to reinvest it back into the share market once it is paid in February.
Here's where I would reinvest this dividend:
Accent Group Ltd (ASX: AX1)
Investors in search of even more dividends might want to consider this retail share which currently provides a trailing fully franked 5.7% dividend. I think the company is well positioned to grow this dividend at a strong rate in FY 2019 following its positive start to the year. A recent trading update revealed that business has been booming during the first 20 weeks of the financial year. This is expected to result in first half EBITDA growth in the range of 15% to 20% according to management.
ResMed Inc. (ASX: RMD)
If you're looking at reinvesting these funds into growth shares then I think ResMed could be a great option. I feel the sleep treatment-focused medical device company is one of the highest quality businesses on the Australian share market. Thanks to its growing addressable market, high quality products, and earnings accretive acquisitions, I believe it is capable of continuing its strong profit growth for many years to come. In the first quarter of FY 2019 ResMed posted a sizeable 23% increase in net income thanks to strong demand for its products and services.
Webjet Limited (ASX: WEB)
Another growth share to consider is this online travel agent. Webjet has been a big winner over the last few years thanks to the shift to online booking. The good news is that management expects this trend to continue for some time to come and is targeting bookings growth many times the industry average over the medium term. This year this is expected to lead to annual EBITDA growth of 26%, excluding the benefits of the recently acquired Destinations of the World business.
