ASX dividend shares can be a great source of income for investors.
However, many businesses only pay dividends to shareholders every six months. That means that investors have to be quite calculated with their cash flow if they rely on that money.
But what if it were possible to find ASX shares that paid more consistently? If investors could find three compelling ASX dividend shares that pay quarterly and each had a different pay cycle that could mean investors get a dividend every month.
But, it's also important to choose income payers that are good investments, not just because of when they pay dividends. Hence, I like the following three shares that could do all of that:
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Rural Funds Group (ASX: RFF)
This is a real estate investment trust (REIT) that owns a portfolio of farmland across almonds, cattle, vineyards, macadamias and cropping (sugar and cotton).
It has a payment cycle of January, April, July and October.
We all have to eat, so I think farmland will continue to be a useful asset for decades, as it has been for hundreds (if not thousands) of years.
Rural Funds' rental income is growing every year. Some of the ASX dividend share's rent is linked to CPI inflation, while a lot of the rest of the income sees a fixed 2.5% annual increase.
The business is utilising a strategy of investing in its farms to make them more productive for tenants, and more valuable for investors.
It aims to increase its distribution by 4% every year. In FY23, the business is expected to pay a grossed-up distribution yield of 5.1%.
Arena REIT No 1 (ASX: ARF)
Arena REIT, as the name suggests, is also a REIT. It develops, owns and manages social infrastructure properties across Australia. This includes early learning and healthcare sector properties.
Those properties are on long-term leases with the objective to "generate an attractive and predictable distribution to investors with earnings growth prospects over the medium to long term."
The ASX dividend share has a payment cycle of February, May, August and November.
In FY22 it achieved a like-for-like rent increase of 4.1%. The weighted average lease expiry (WALE) is 19.8 years, with an occupancy rate of 100%. That gives it long-term rental income visibility for the coming years.
It also has a development pipeline of $139 million across 20 projects, which can drive further rental growth.
It's expecting to grow its FY23 distribution by 5% to 16.8 cents per share. That translates into a forward distribution yield of 4.9%.
GQG Partners Inc (ASX: GQG)
GQG Partners is one of the largest fund managers on the ASX. It offers a number of different investment strategies including US shares, international shares, dividend shares and so on.
The business aims to pay out around 90% of its distributable earnings to investors.
It has a payment schedule of March, June, September and December.
Despite all the volatility that we're seeing, GQG's investment funds are still showing outperformance against benchmarks and it continues to experience fund inflows.
In the three months to 30 September 2022, it experienced net inflows of US$0.8 billion. Management said this demonstrated its "continued strong, well-diversified gross inflows across multiple geographies and major channels".
It's also seeing "strong traction" with its more recently launched products.
As a bonus, the largest shareholders in GQG are the management team, which makes them "highly aligned with shareholders" and "acutely focused on and committed to GQG's future".
According to Commsec's estimate, the ASX dividend share could pay an annual amount of 13.3 cents per share, translating into a forward yield of 9%.
