Later today eligible Woolworths Group Ltd (ASX: WOW) shareholders will be paid the conglomerate's interim dividend.
Whilst many shareholders will use these dividends as a source of income, others may wish to reinvest them back into the share market.
For the latter group, here are two top ASX options I would invest these funds into:
Altium Limited (ASX: ALU)
If you're interested in growth shares then I would suggest you look at Altium. It is an electronic design software company which is exposed to the rapidly growing Internet of Things (IoT) market. Although it withdrew its guidance this week, the company spoke positively about current trading conditions and the resilience of the electronic design market. Management notes that engineers are using excess time and capacity from the slowdown in manufacturing and supply chain to revert back to prototype designs.
In addition to this, Altium is accelerating the rollout of its new cloud platform Altium 365. This is in response to worldwide demand growing rapidly for cloud-based collaborative tools across all sectors. Whilst the next few months may be uncertain, its look term outlook remains as positive as ever due to the IoT boom.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Investors that are looking for more dividends might want to consider this exchange traded fund. As you might have guessed from its name, this exchange traded fund gives investors exposure to some of the highest yielding ASX shares through a single investment. This includes the likes of BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), and the big four banks.
I think this diversity is especially important in the current environment when many traditional dividend-paying companies are deferring or outright cancelling their distributions. While estimating its potential yield is tricky currently, I would expect a forward ~80% franked dividend yield of at least 5% over the next 12 months. I feel this is very attractive given how slender the interest rates of term deposits and savings accounts are at present.
