This morning the Commonwealth Bank of Australia (ASX: CBA) interim dividend of 199 cents per share will be paid out to shareholders of Australia's biggest bank.
In total an estimated $3.4 billion will be paid out to over 800,000 retail shareholders.
I think any investors looking to reinvest these dividends back into the market could do a lot worse than these three high quality shares:
a2 Milk Company Ltd (Australia) (ASX: A2M)
I think a2 Milk would be a great option for investors wishing to reinvest their dividend into growth shares. The fast-growing dairy company recently reported an incredible 290% increase in net profit after tax to NZ$39.4 million, thanks partly to the insatiable demand from Chinese consumers. News that Chinese officials have delayed new cross border e-commerce laws indefinitely has been a huge boost, as these new laws had threatened to reduce the sales of leading exporters into the country. Whilst laws can change at the drop of a hat in China, at this point in time things look favourable for this explosive company.
Event Hospitality and Entertainment Ltd (ASX: EVT)
Thanks to the tailwinds of the tourism boom, I think the company behind brands including Event Cinema, Rydges, and Thredbo Alpine Village could be in a strong position to deliver solid long-term profit growth. This could make it a great option for investors that wish to reinvest their Commonwealth Bank pay out back into dividend shares. At the current share price Event provides investors with a fully franked trailing 3.9% dividend. I believe this has a lot of room for growth over the next decade.
Ramsay Health Care Limited (ASX: RHC)
I believe this leading private hospital operator would be a great option for investors looking to make a buy and hold investment. In the last 10 years the company has grown its earnings by a stunning average of 16.8% per annum. Due to ageing populations around the world, increased chronic disease burden, and improvements in treatment and diagnostic methods, I expect Ramsay to continue growing earnings at a similarly solid rate for the next decade.
