On the ASX, investors can normally expect dividend payments every six months from their dividend shares. This biannual income schedule is decidedly the norm on the Australian markets. ASX dividend stocks that pay out quarterly payments are rare, and stocks that dole out a paycheque every month are rarer still.
But that doesn't mean they don't exist.
One such example is Plato Income Maximiser (ASX: PL8). This listed investment company (LIC) specialises in paying out fat, fully franked dividends. And it does so every single month, with its shareholders getting a paycheque in the proverbial mailbox 12 times a year.
Plato Income Maximiser, like all LICs, manages a portfolio of underlying assets on behalf of its shareholders. In this case, those assets are a collection of diversified ASX dividend stocks, selected on their current and future income potential.
Some of the largest ASX dividend stock positions in Plato's portfolio include ANZ Group Holdings Ltd (ASX: ANZ), BHP Group Ltd (ASX: BHP), Goodman Group (ASX: GMG) and Commonwealth Bank of Australia (ASX: CBA).
Some of Plato's highest-yielding ASX dividend stocks include Woodside Energy Group Ltd (ASX: WDS), Ampol Ltd (ASX: ALD), Metcash Ltd (ASX: MTS) and Whitehaven Coal Ltd (ASX: WHC).
Over the past 12 months, Plato shareholders have enjoyed a monthly dividend worth 5.5 cents per share. Each of those 12 dividends came with full franking credits attached.
At the current Plato share price of $1.21, these payments give this ASX dividend stock a yield of 5.91%.
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$100 a month in cash from this ASX dividend stock?
That means that if an income investor puts approximately $20,350 into Plato shares today, and the company at least maintains its dividend schedule, that investor can expect to enjoy around $100 in passive dividend income every month.
Of course, we should never assume that an ASX dividend stock will continue paying out the dividends it has in the past into the future. But Plato does have a fairly strong record when it comes to maintaining its dividend. Since it was first listed back in 2017, the only significant income cuts came in the COVID-ravaged years of 2020 and 2021.
Over 2022, 2023 and 2024 to date, Plato's dividends have been remarkably consistent.
That's in addition to some healthy overall returns from Plato shares. The ASX dividend stock tells us that, as of 31 May, its shareholders have enjoyed a total return (including share price gains, dividends, fees and franking credits) of 9.6% per annum since its 2017 inception. That compares to an average of 9.5% per annum from its ASX 200 benchmark over the same period.
