Tofay eligible BHP Group Ltd (ASX: BHP) shareholders will be paid the mining giant's fully franked 75.5 cents per share fully franked dividend.
While some investors will use this for income, others may wish to reinvest these funds back into the share market.
Here's where I would invest these dividends:
Appen Ltd (ASX: APX)
If you're looking to invest these funds into a growth share, then I feel Appen could be one to consider. Especially given its exposure to the rapidly growing artificial intelligence market as the global leader in the development of high-quality, human-annotated training data.
Through its team of over 1 million crowd-sourced workers, Appen is able to collect and label high volumes of image, text, speech, audio, and video data that is used to build and improve artificial intelligence models. With businesses and governments continuing to invest heavily in the space, I expect demand for its services to grow strong over the coming years. This should put Appen in a position to continue growing its earnings at a strong rate long into the future.
Rural Funds Group (ASX: RFF)
If you're looking for even more dividends, then you might want to consider Rural Funds. It is an agriculture-focused property company which owns a portfolio of high quality property assets with long tenancy agreements. And when I say long, I mean long. Rural Funds finished FY 2020 with a weighted average lease expiry of ~11 years.
And given that the company has rental increases built into these leases, it is exceptionally well-positioned to deliver on its distribution target. Management is aiming to increase its distribution by 4% per annum over the long term. It has already committed to this in FY 2021 and plans to lift its distribution by this margin to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 4.9% yield.
