This 4.78% monthly dividend stock is an ASX investor's dream

This stock gives its investors a reliable monthly income stream.

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A steady monthly payout? That's the dream for anyone investing on the ASX.

While most ASX dividend stocks make you wait six months (or even a year) between payment dates, some pay out dividends month after month. For income-focused investors, it's like putting your portfolio on a regular paycheck.

If you want real monthly income like clockwork, Plato Income Maximiser Ltd (ASX: PL8) ticks many boxes.

What is Plato Income Maximiser?

Plato is a listed investment company (LIC) on the ASX focused on delivering high, reliable monthly income with franking credits from an actively managed, diversified portfolio of Australian shares.

Its investment strategy targets income-focused investors, specifically retirees and SMSF investors who need a dependable income stream, with the goal of outperforming a benchmark index over a 3-5 year investment cycle.  

What does its portfolio look like?

The ASX dividend stock holds a portfolio of mature ASX-listed equities, cash, and listed futures with the goal of generating a high, franked income stream for investors. 

Its portfolio holdings mostly focus on Australian companies with strong dividend payouts, such as major banks, mining giants, and energy firms. It aims to consistently deliver above-market dividends and total returns, including franking credits. 

For example, as of 31 July this year, its portfolio included holdings in stocks such as Yancoal Australia Ltd (ASX: YAL), Origin Energy Ltd (ASX: ORG), Wesfarmers Ltd (ASX: WES), and Eagers Automotive Ltd (ASX: APE).

What about its payouts?

Most importantly, the ASX dividend stock has consistently paid fully franked dividends of 0.55 cents per share every month since April 2022. The stock's dividend payment history dates back to March 2018, when it paid out a slightly lower 0.45 cents per share.

Plato also announced in its FY25 financial results that the board will pay three additional full-franked monthly dividends of 0.55 cents per share for the September 2025 quarter, the first of which was paid on 31 July.

That equates to an annual running total of 6.6 cents per share in full franked passive income.

At the current price of $1.415 per share (at the time of writing), that gives a trailing dividend yield of 4.78%.

"At 30 June 2025, the value of the Company's franking account was $9.0m, or $0.012 per share. This is equivalent to $0.028 per share in fully-franked dividends at a company tax rate of 30% and the Company presently maintains sufficient profit reserves for this value of dividends," the company explained in its recent results announcement.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Eagers Automotive Ltd. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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