Although the S&P/ASX 200 Index (ASX: XJO) is still pretty close to its August all-time highs, there are still a few well-known blue chip shares that are offering dividend yields above 4% today. But despite popular dividend shares like Telstra Group Ltd (ASX: TLS), Westpac Banking Corp (ASX: WBC) and Fortescue Ltd (ASX: FMG) do offer yields over 4%, they still only pay out two dividends a year.
That might be fine for some investors. But others would very much prefer a more regular payment schedule. After all, our bills and living expenses don't get invoiced to us every six months. So why not invest in a dividend-paying stock that accommodates more frequent paycheques?
Investors who agree with that sentiment might wish to check out a certain income-focused exchange-traded fund (ETF).
That ETF is none other than the BetaShares S&P Australian Shares High Yield ETF (AS:X HYLD).
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How does this ASX income ETF work?
Like most ASX ETFs, HYLD holds a portfolio of underlying investments, which it manages on behalf of its investors. In this case, that portfolio consists of dozens of proven dividend stocks from the ASX. These range from the usual suspects like BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB) and Telstra to others like Coles Group Ltd (ASX: COL), Suncorp Group Ltd (ASX: SUN) and Ampol Ltd (ASX: ALD).
You might also recognise Medibank Private Ltd (ASX: MPL), Metcash Ltd (ASX: MTS) and APA Group (ASX: APA).
This income ETF is able to extract and pass on the dividends it receives from these holdings, alongside profits from rebalancing its portfolio, to its own investors as dividend distributions. This it does 12 times a year.
Yes, HYLD is a monthly dividend payer. Additionally, its dividends tend to come not fully franked, but partially franked to a high level. To illustrate, this ETF's most recent payout, which arrived on 18 August, was franked at 77.84%.
But let's get to some numbers. HYLD has just passed its twelfth dividend payment (the one we just discussed). That means we can give it a proper trailing yield for the first time. So over the past 12 months, this ASX income ETF has doled out a total of $1.4275 in dividends per unit. At the current (at the time of writing) unit price of $33.50, that 12-month dividend total gives this ASX income ETF a trailing yield of 4.26%.
Given that yield, as well as this ASX income ETF's monthly payout schedule, this investment might well be worth a look today if dividends are a priority of your ASX investing portfolio.
