If you're an eligible Telstra Corporation Ltd (ASX: TLS) shareholder, earlier today you should have been paid the telco giant's fully franked 8 cents per share final dividend.
While many shareholders will be using these funds as a source of income (particularly in this low interest rate environment), others may plan to reinvest these dividends back into the share market.
If you're in the latter group, here are two top ASX shares that I would invest these funds into:
Dicker Data Ltd (ASX: DDR)
If you're on the lookout for even more dividends, then you might want to take a look at Dicker Data. It is the leading wholesale distributor of computer hardware and software across the ANZ region. I believe Dicker Data is well-placed to continue its growth over the next decade thanks to its strengthening market position, growing vendor agreements, and positive tailwinds. In addition to this, the company is currently constructing a new distribution centre. This will give Dicker Data significant room to expand its operations and boost its revenue once complete.
In FY 2020 the company is aiming to lift its dividend by 31% to 35.5 cents per share. Based on the current Dicker Data share price, this represents a generous fully franked 4.6% dividend yield.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Another option to consider reinvesting your Telstra dividends into is the BetaShares NASDAQ 100 ETF. As its name implies, this ETF gives investors exposure to 100 of the largest non-financial companies listed on the famous Nasdaq index.
Among its holdings you'll find some of the biggest and brightest companies in the world and those at the forefront of the new economy. This includes giants such as Amazon, Apple, Facebook, Microsoft, and Netflix. Another positive is that the ETFs strong focus on technology gives investors diversified exposure to a high-growth potential sector that is under-represented on the Australian share market. Given the quality of the companies included in the ETF, I believe it can outperform the ASX 200 over the long term.
