On Friday morning the JB Hi-Fi Limited (ASX: JBH) share price is trading lower following general market weakness after another poor night on Wall Street.
While this is disappointing, easing the blow for shareholders is the fact that today is the day they will be paid the retail giant's 90 cents per share fully franked final dividend.
While some shareholders may use these funds as income to live from, others may wish to invest the money back into the share market.
For the latter group, here are three ASX shares I would invest these dividends into:
Kogan.com Ltd (ASX: KGN)
If you're interested in investing these funds into a growth share, then you might want to consider Kogan. I think the ecommerce company would be a great long term option for investors due to continued shift to online shopping. In addition to this, its expansion into potentially lucrative verticals, the growing Kogan Marketplace, and potential value accretive acquisitions should support its earnings growth in the future.
SEEK Limited (ASX: SEK)
Looking for a blue chip ASX share to invest these funds into? Then I believe this job listings giant could be a top option. Although the immediate term will be very tough because of the pandemic, I believe SEEK has the potential to be a strong performer over the long term. This is thanks to its dominating ANZ business and its rapidly growing Chinese operation. All in all, I feel confident the company will deliver on its aspirational revenue target of $5 billion later this decade. This represents a big increase on the revenue of $1,577.4 million it posted in FY 2020.
Telstra Corporation Ltd (ASX: TLS)
If you're interested in generating even more dividends in the future, then I think Telstra would be worth considering. I think its shares are great value given its positive medium term outlook, defensive qualities, and generous dividend yield. In respect to the latter, I'm confident that Telstra will maintain its 16 cents per share dividend in FY 2021 by adjusting its policy to a free cash flow based one. If it does this, it will provide investors with a fully franked 5.6% dividend yield.
