There are many ASX dividend shares on the market that pay investors a consistent, reliable passive income.
The majority of them distribute cash to their shareholders every 6 or 12 months. But did you know there are a handful of shares that pay out much more frequently?
Here are three of my favourite ASX shares that pay dividends every month.
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BetaShares Dividend Harvester Active ETF (ASX: HVST)
HVST is an ASX-listed exchange-traded fund (ETF) that provides investors with exposure to a portfolio of up to 60 dividend-paying shares. It doesn't track an index; instead, it targets exposure to high-dividend stocks drawn from the 100 largest ASX-listed companies.
Its portfolio is mostly weighted into the financial sector, which accounts for 26.9% of its allocation at the time of writing. The materials sector is second, accounting for 10.1% of its allocation.
And the fund is structured so that it can own a share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next passive income-generating shares.
HVST pays its shareholders a franked dividend income every single month. As of the 31st of July, its 12-month gross distribution (dividend) yield is 7.1%, and the net yield is 5.6%. The franking level is 63.3%. The fund's annual management fee and costs are 0.72%.
The fund paid out $0.06 per share to investors earlier this month. In fact, the fund has paid around $0.06 per share each month since January 2024.
At the time of writing, HVST shares are up around 1% year to date and trading at $13.65 per share.
Metrics Income Opportunities Trust (ASX: MOT)
The MOT is a listed investment trust (LIT) with a portfolio of private credit and related opportunities. Its portfolio can give investors direct exposure to private credit investments, which have become an increasingly popular asset class.
The Trust 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.
The Trust targets a cash yield of 7% per year, paid monthly. It has a total target return of 8% to 10% per year, net of fees and expenses.
The Trust also has a distribution reinvestment plan (DRP), which allows its shareholders to reinvest their monthly income distributions.
The ASX dividend share's most recent payout to shareholders was an unfranked 1.11-cent dividend paid earlier this month. The Trust paid out 2.62 cents in July, 1.16 cents in June, and 1.22 cents in April. This translates to a dividend yield of around 9.5%, at the time of writing.
At the time of writing, MOT shares are down around 14% year to date and trading at $1.62 per share.
Plato Income Maximiser Ltd (ASX: PL8)
Plato is another LIC, but one that specifically targets income-focused investors, such as retirees and SMSF investors, who need a dependable income stream.
The ASX dividend stock holds a portfolio of mature ASX-listed equities, cash, and listed futures. It mostly focuses on Australian companies with strong dividend payouts, such as major banks, mining giants, and energy firms.
Its goal is to generate a high, franked income stream for investors and to consistently deliver above-market dividends and total returns, including franking credits.
Plato has consistently paid fully-franked dividends of 0.55 cents per share every month since April 2022. That equates to an annual running total of 6.6 cents per share in fully-franked passive income, yielding around 4.6%.
At the time of writing, Plato shares are trading at $1.40 each, down around 4% for the year to date.
