It's easy to find a good dividend-paying stock on the ASX that hands out cash to its investors. But most of these only pay out every 6 or 12 months.
Finding a dividend stock that pays out money every month is a lot harder to pin down.
I've written before about how the BetaShares Dividend Harvester Active ETF (ASX: HVST) is a great monthly-paying stock. It has a decent upside, too. Even the Plato Income Maximiser Ltd (ASX: PL8) and its regular payments are an ASX investor's dream.
But there is also another monthly-paying dividend stock I have my eye on right now.
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Metrics Master Income Trust (ASX: MXT)
The Metrics Master Income Trust is a listed investment trust (LIT). It doesn't invest in a portfolio of other ASX dividend shares, but instead it has a portfolio of corporate loans and private credit investments.
This means it is able to give its investors the advantage of direct exposure to the Australian corporate loan market. This is a space currently dominated by Australia's regulated banks. The LIT is able to offer diversity-seeking investors an alternative investment that prioritises income stability and pays out dividends on a monthly basis.
What does the ASX dividend stock pay out?
Metrics Master Income Trust targets a return of the Reserve Bank cash rate plus 3.25% p.a. (net of fees) through the economic cycle. Distributions are paid monthly, although there is also a distribution reinvestment plan (DRP), which allows unit holders to reinvest monthly income distributions.
The ASX dividend stock's latest payout was 1.27 cents per share in October, paid on 10 November. That means that over the past 12 months, the Metrics Master Income Trust has paid out 12 dividends that total 16 cents per share (unfranked). At the time of writing, this gives the LIT a dividend yield of 8.03%.
Its next ex-dividend date is tomorrow, 28th November, where it plans to hand out 1.24 cents per share, payable on the 8th of December.
At the time of writing, in Thursday lunchtime trade, the Metrics Master Income Trust's shares are 0.38% higher at $1.9625 a piece. Over the past month, the shares have climbed 1.13% but they're still 6.12% lower than this time last year.
The LIT's annual decline means it has underperformed the S&P/ASX 200 Index (ASX: XJO). Over the same 12-month period, the ASX 200 Index has risen 2.74%, at the time of writing.
