I'm always on the lookout for ASX dividend-paying stocks that offer a monthly passive income.
I've written before about BetaShares Dividend Harvester Active ETF (ASX: HVST), which gives its investors exposure to a large portfolio of up to 60 dividend-paying shares.
Or the Plato Income Maximiser Ltd (ASX: PL8), which targets income-focused investors like retirees and SMSF investors who need a dependable income stream.
And then there's newcomer BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX), which targets the largest 20 Australian shares on the ASX.
But there's another ASX stock which has caught my eye. And it pays monthly dividends with a yield just over 9%.
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Metrics Income Opportunities Trust (ASX: MOT)
The Metrics Income Opportunities Trust is a listed investment trust (LIT). The trust has a diversified portfolio of private credit and other related opportunities.
It means that investors can get direct exposure to private credit investments, an increasingly popular asset class for income-focused investors.
The LIT said its investment objective is to provide monthly cash income, preserve investor capital, and manage investment risks. It also seeks to provide upside potential through investments in private credit and other assets. These "other assets" include warrants, options, preference shares, and equity.
What passive income does the ASX dividend stock pay?
Metrics Income Opportunities Trust targets a cash yield of 7% per year, with a total target return of 8% to 10% per year. The yield is net of fees and expenses. The LIT pays dividends on a monthly basis. It also has a distribution reinvestment plan (DRP), which allows unitholders to reinvest monthly income distributions.
The ASX dividend stock's latest payout was 0.92 cents per share in late February. This followed a payment of 1.22 cents per share paid in January.
Over the past 12 months, the Metrics Income Opportunities Trust has paid out 12 dividends that total 16.25 cents per share (unfranked). This means the LIT has a dividend yield of around 9.25% at the time of writing.
The Metrics Income Opportunities Trust share price is trading 2.01% higher at $1.78 at the time of writing. However, year to date, the shares are down 5.32%, and over the past year, they're down 13.59%.
The LIT's annual decline means it has underperformed the All Ordinaries Index (ASX: XAO). Over the same 12-month period, the All Ords Index has risen 8.53%, at the time of writing.
