There aren't many ASX dividend stocks on our market that will pay you cash flow every month. Normally, a six-month interval between dividend payments is the standard on the ASX. Quarterly dividend payers are rarer, but still abound. However, monthly dividend payers are almost as common as hen's teeth on our market.
Almost.
Whilst extremely hard to find, there are some ASX dividend stocks that pay their investors 12 times a year. I happen to own one in my own ASX portfolio, and it's my most frequent and prolific income payer. So much so that I could even call it my own personal ATM.
This ASX dividend stock is none other than Plato Income Maximiser Ltd (ASX: PL8).
Plato Income Maximiser is a listed investment company (LIC), meaning it is a company that doesn't itself produce goods or services. Instead, it holds a portfolio of other underlying investments that it manages on behalf of its shareholders.
In this case, that portfolio is made up of other ASX dividend shares, selected for their income potential. As of 30 June, these include the classic heavy-hitters like ANZ Group Holdings Ltd (ASX: ANZ) and BHP Group Ltd (ASX: BHP), as well as Yancoal Australia Ltd (ASX: YAL) and QBE Insurance Group Ltd (ASX: QBE).
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This ASX dividend stock is my portfolio ATM
Plato is able to fund its 12 dividends per year from the income that this portfolio produces.
And it's substantial income too. Over the past 12 months, investors have bagged 12 payments from this ASX dividend stock, each worth 0.55 cents per share. That adds up to an annual total of 6.6 cents per share in dividends. At the current Plato share price of $1.40, that gives this LIC a trailing dividend yield of 4.71%.
Those dividends all came with full franking credits attached too.
So a 4.71% fully franked yield isn't too bad, right? Well, no. However, I was fortunate enough to establish my Plato position when the company was well below its current share price, thanks in part to a generous capital raising scheme a few years ago. As such, my yield on cost for this ASX dividend stock is more like 6.05%.
With a yield of that size, you can see how this LIC could be described as a personal ATM for my portfolio. I love having this regular cash flow, which allows me the flexibility to redeploy it into other dividend positions or just build up in my brokerage account.
