Got $10,000 to invest? How to turn it into monthly income

I'd buy these stocks if I were aiming for monthly cash flow.

Tristan Harrison

Author Bio Tristan Harrison has a decade of experience as an ASX share investment writer and was previously a business, tax and audit accountant for seven years. Tristan has contributed to The Motley Fool since October 2016. He has an advanced diploma from the Association of Accounting Technicians and is currently enrolled in the Chartered Institute Management Accountant (CIMA) program. Tristan's goal is to help Australians learn about great ASX shares that can help grow their portfolio, wealth and dividends over the long-term. Areas of Expertise ASX dividend shares and passive income strategies ASX growth shares and ETFs Business and company financial analysis Franking credits and personal tax topics Personal finance Education Advanced diploma from the Association of Accounting Technicians Enrolled in the Chartered Institute Management Accountant (CIMA) program Social Media X/Twitter Favorite Investment Quote "Live within your income and save so that you can invest." — Charlie Munger

Published March 9, 2024 3:30 am AEDT

Some investors may be looking for regular income. A salary can certainly provide that consistent level of income. But can ASX shares also provide monthly income?

I can understand why people want monthly income – a lot of household expenditure is monthly like the mortgage or rental payment. Various other bills come regularly, food is a very regular purchase. Regular investment cash flow could help with that.

There are very few ASX investments that pay monthly, and I don't like all of them. Furthermore, the investment needs to make sense, the dividend income shouldn't be the only important factor to consider.

But, if we create a $10,000 portfolio of ASX shares that pay quarterly, then there is a way to create that monthly income.

Man jumping in water with a floatable flamingo, symbolising passive income. — Image source: Getty Images

Regular dividend payers

One option is Rural Funds Group (ASX: RFF), a real estate investment trust (REIT) that owns farmland including almonds, macadamias, cattle and vineyards.

Rural Funds pays a distribution every three months in January, April, July and October.

Charter Hall Long Wale REIT (ASX: CLW) is another REIT. It owns a variety of different properties including distribution centres and logistics, food manufacturing, pubs and bottle shops, service stations, telecommunication exchanges, Bunnings properties and so on.

Charter Hall Long Wale REIT pays a distribution every three months in February, May, August and November.

GQG Partners Inc (ASX: GQG) is a fund manager that's rapidly growing its funds under management (FUM), leading to profit and dividend growth.

GQG pays a dividend in March, June, September and December.

Should monthly income matter?

Receiving dividends every month is an appealing outcome, but there are more ASX dividend shares out there than just the few I have mentioned today. A lot of dividend payers don't pay every quarter, but I still think they're worth owning.

I'd rather own a portfolio of names that pay every six months (or even once a year), ensuring I've made the best investments, rather than trying to purposefully choose ones just based on the months they pay. Even so, regular readers will know that I like all three of these ASX dividend shares.

Foolish takeaway

By spreading $10,000 across the three names I mentioned, we can create a decent cash flow every month. I like their potential and they could all grow profit in the years ahead.

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