A simple answer might be: Spend the cash!
Another might be: buy more BHP shares!
But I believe there are better options than both of those — unless you need the cash to cover your basic necessities, of course. The BHP special dividend is a once-off, so I think the best thing to do is re-invest the money back into ASX shares, such as these two:
MNF Group Ltd (ASX: MNF)
There are few ASX businesses that have seen the share price fall by more than 33% over the past year despite predicting profit growth.
That’s exactly the situation with voice over internet protocol (voip) business MNF Group — it’s down 36% over the past 12 months, yet management is projecting profit growth of 7.3% this year and at least another 16.5% on top of that.
Organic growth alone could make the current valuation of 26 times FY18 profit seem reasonable, but the acquisition of Telco In A Box and the Singapore acquisition could also add additional earnings streams for the company. Regional baby boomer telco brand Pennytel could be a decent earner too.
MNF has a handy fully franked dividend yield of 1.9%.
REA Group Limited (ASX: REA)
REA Group is another business that seems to be growing profit every six months, yet its share price is down nearly 20% since the high in the August 2018 reporting season.
REA Group operates many of the Australian property sites that are leaders in their categories, such as realestate.com.au, flatmates.com.au and realcommercial.com.au.
You may think a property advertising business wouldn’t do so well with Australian house prices falling, but with properties taking longer to sell REA Group is actually hoovering up more advertising dollars with the ad staying up for longer. That’s one of the reasons why the company was able to reveal 17% revenue growth in the first quarter.
Despite writing down the value of its Asian property investment, the ex-iProperty business could turn into a very useful asset for REA Group as more of Asia’s population do tasks digitally, such as searching for property.