There are currently only a handful of ASX dividend stocks that provide monthly income to their investors.
ASX shares typically pay out just two dividends a year. That's the case for most of the ASX's famous blue chips, whether it be Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), or Telstra Group Ltd (ASX: TLS).
Some ASX shares and exchange-traded funds (ETFs) fork out quarterly dividends, but these are uncommon. Rarer still are monthly dividend payers. Yet many investors appreciate the regularity of a monthly dividend.
Those investors currently have only a few options, including Plato Income Maximiser Ltd (ASX: PL8) and the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD). But they will soon have one more to consider.
This month, fund manager Solaris Investment Management revealed plans to float a listed investment company (LIC) that will follow the strategy of its existing Solaris Australian Equity Income Fund, an unlisted managed fund.
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A new monthly ASX dividend stock
This fund invests in a basket of underlying ASX dividend shares. The fund's latest update tells us that these include Nine Entertainment Group Holdings Ltd (ASX: NEC), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC) and Capricorn Metals Ltd (ASX: CMM).
The Solaris Australian Equity Income Fund has been around since 2016. Since that time, it has delivered some robust results for investors. As of 28 February, investors have enjoyed an average return of 11.21% per annum. Of that 11.21%, 8.33% per annum came from dividend income distributions, including the value of franking credits. The other 2.88% came from capital growth.
As we speak, Solaris is undertaking a capital raising, at $2 a share, from investors to launch the listed version of the Solaris Australian Equity Income Fund. It will be known as Solaris Australian Equity Income Plus Ltd, and will trade with the ASX ticker code 'SET'. Solaris has nominated 17 April 2026 as the day that shares of this new ASX dividend stock are expected to commence trading.
Upon listing, Solaris has stated that the new company will have three objectives:
- generate income, inclusive of franking credits, that exceeds the income of the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (Benchmark) annually
- generate total returns that are broadly in line with, or exceed, the Benchmark over the medium to long term
- deliver regular monthly income in the form of franked dividends
The fund manager expects Solaris Australian Equity Income Plus Ltd to pay the first of its monthly dividends in August this year. While there's no guarantee (as with any ASX dividend stock) that investors will receive an 8%-plus dividend yield going forward, the company's successful track record in delivering income will be reassuring for many.
