If you're searching for your next ASX dividend stock to buy this January, you might have some ideas about what you are seeking. You are probably looking for a reliable provider of passive income that offers a high dividend yield with full franking credits. Perhaps receiving income every month, rather than every quarter or every six months (as is the norm on the ASX), is also on the wish list.
Well, Plato Income Maximiser Ltd (ASX: PL8) is a stock that ticks all of those boxes. This listed investment company (LIC) is also inherently diversified, going above and beyond our initial checklist.
Let's dive into why this ASX dividend stock might be the perfect buy for income investors for 2026.
Like most LICs, Plato owns and manages a portfolio of underlying investments on behalf of its shareholders. In this case, the portfolio consists of other ASX shares. These shares are mostly blue-chip stocks with strong track records of paying substantial, sustainable dividends.
As of the latest data, these stocks included ANZ Group Holdings Ltd (ASX: ANZ), Beach Energy Ltd (ASX: BPT), Fortescue Ltd (ASX: FMG), Suncorp Group Ltd (ASX: SUN), APA Group Ltd (ASX: APA) and Commonwealth Bank of Australia (ASX: CBA).
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An ASX dividend stock paying a 4.5% monthly yield
Plato draws the dividend income it receives from this portfolio and channels it to its investors as monthly dividends, which also carry full franking credits.
Over the past 12 months, Plato has paid out 12 dividends. Each of those monthly dividends was worth 0.55 cents per share. Adding that up, we get an annual dividend of 6.6 cents per share. At the current Plato share price of $1.48 (at the time of writing), this ASX dividend stock has a trailing yield of 4.46%.
That's all well and good. But, as the more jaded investors out there might tell you, a high dividend yield doesn't mean an ASX dividend share will be a good investment. Fortunately, Plato has plenty of data to potentially convince investors otherwise in its case.
The company's latest performance figures confirm that, since this ASX dividend stock's inception in April 2017, its shares have returned (share price growth plus dividends and franking) an average of 10.3% per annum (as of 31 December). That's slightly above what the broader S&P/ASX 200 Index (ASX: XJO) has delivered over the same period.
With a monthly dividend, a diversified portfolio of underlying investments, and a stellar track record of delivering returns for shareholders, I think Plato is the perfect ASX dividend stock for income investors to consider this January.
