The arrival of COVID-19 last year saw many dividend-paying ASX shares reduce their payouts.
Most ASX companies, if they pay a dividend at all, hand out once or twice a year. Very occasionally you might see a stock pay a dividend quarterly.
So 2020 was an unpleasant time for income investors who may be relying on these irregular payments to pay living expenses. If they copped a less-than-expected amount one time, they might've had to wait months for another contribution.
When some companies, like the big banks, increased their dividends again this year, those punters will have breathed a sigh of relief.
But did you know there is one ASX stock that's been paying out dividends every month?
This ASX small-cap is as reliable as the moon
Stocks for accounting and taxation firm Kelly Partners Group Holdings Ltd (ASX: KPG) have been a star performer recently.
The North Sydney company's share price zoomed up 38% over June, going from $2.46 to $3.40. It closed Monday at $3.20.
Kelly Partners was the Cyan C2G Fund's best performer of the month.
"We have been long-term investors in the business — since IPO in June 2017 — and believe the stock has been fundamentally undervalued for some time," Cyan portfolio manager Dean Fergie said in a memo to clients.
"However we're not entirely sure what has prompted the timing of this recent price spike other than some rumoured offshore buying."
According to Fergie, Kelly Partners has "a solid business model" playing in an industry that's very stable and reliable.
But there could be another reason for the recent popularity.
"[It] is one of the only ASX listed companies — to our knowledge at least — that pays a monthly dividend," said Fergie.
"In an era of almost zero interest rates, this is obviously an attractive investment feature that may well have helped support the recent price activity."
And indeed, The Motley Fool's stock profile page confirms Kelly Partners has paid a dividend every month starting last December.
It paid out quarterly prior to that.
It gets better
What's more, last week the accounting firm announced it would increase the monthly amount.
"We are pleased to announce from July 2021 the company will increase its monthly dividends from 0.33c per share to 0.36c per share, representing an increase of 10%," its statement to the ASX read.
"Total dividends paid in relation to FY22 is expected to increase from 5.32 cents per share in FY21 to 5.85cps. The company has grown its dividends by 10% per annum for the fifth straight year."
Kelly Partners' yield currently stands at 1.45%.
The firm employs more than 250 people who service more than 8,000 small-to-medium business clients.
