On Wednesday eligible Macquarie Group Ltd (ASX: MQG) shareholders will be paid the investment bank's partially franked $2.50 per share interim dividend.
I'm sure some of its shareholders will use this as a source of income to live on or perhaps even pay for some last-minute Christmas presents. Whereas others may be looking to reinvest these funds back into the share market.
If you're in the latter group of shareholders, here's where I would reinvest this money:
Appen Ltd (ASX: APX)
I think that Appen would be a great place to reinvest your dividends. I believe the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence is perfectly positioned to deliver strong long term earnings growth. This is thanks to its integral position in the artificial intelligence and machine learning markets. As high-tech as these markets are, they still require copious amounts of training data to build and improve their applications. And with Appen having a +1 million on-demand global crowd that cover 130 countries and 180 languages and dialects, it looks set to benefit greatly from the rapidly growing demand for training data.
Transurban Group (ASX: TCL)
If you're interested in turning these dividends into even more dividends then you might want to consider Transurban. The toll road operator is one of my favourite dividend shares due to its long history of dividend increases and its positive long-term outlook. The latter is thanks to the key roads in its portfolio, expansion and acquisition opportunities, and its strong pricing power. Due to the significant time-savings that its roads provide, Transurban has never had an issue increasing its toll prices. And with congestion on arterial roads continuing to get worse, I expect this trend to continue long into the future. At present its shares offer a forecast forward 4% distribution yield.
Webjet Limited (ASX: WEB)
A final share to consider investing your dividends into its Webjet. As with Appen, I believe this online travel booking company has strong long-term growth potential. Especially if it can successfully deliver on its 8/4/4" profitability target by FY 2022. This profitability target aims to increase its EBITDA margin to 50% from 34% in FY 2019. And thanks to its growing WebBeds business and RezChain blockchain technology, I feel confident it can achieve this target and drive strong profit growth over the coming years.
