If you're an eligible shareholder of Commonwealth Bank of Australia (ASX: CBA), then today you will be paid the banking giant's fully franked 150 cents per share interim dividend.
While a good number of shareholders will be using these funds as a source of income, some might want to reinvest these dividends back into the share market.
With that in mind, I have picked out three ASX shares that could be good options for these dividends:
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Altium Limited (ASX: ALU)
Altium could be a good option for these funds. It is an award-winning printed circuit board design software provider which has been growing very strongly over the last decade. The good news is that with demand expected to increase because of the artificial intelligence and Internet of Things markets, the next decade looks likely to be similarly successful. Particularly given how its platform is head and shoulders above the competition. Analysts at Credit Suisse are positive on the company and recently put an outperform rating and $35.00 price target on its shares.
CSL Limited (ASX: CSL)
If you're looking for a blue chip ASX share to buy with these funds, then CSL could be a good option. Especially following a sharp pullback in the CSL share price in recent months due to concerns over COVID-19 headwinds. Once these headwinds ease, the company looks well-placed to resume its growth. Particularly given the strong demand for its therapies and vaccines and its lucrative R&D pipeline. Credit Suisse is a fan of CSL as well. It recently upgraded its shares to an outperform rating with a $315.00 price target.
Telstra Corporation Ltd (ASX: TLS)
If you're interested in generating even more dividends, then you might want to look at Telstra. This telco giant has had a few tough years because of the NBN rollout, but the future is looking increasingly positive. This is thanks to the simplification of its business, cost cutting, and rational competition in the telco market. In light of this, Goldman Sachs believes Telstra's dividend has bottomed. It expects the company to pay a 16 cents per share fully franked dividend for the foreseeable future. Based on the latest Telstra share price, this equates to a 4.7% dividend yield.
