I'm always on the lookout for great ASX shares that dish out a reliable and timely payment to investors, especially if they have a dividend yield as high as 8%, or even higher.

I wrote about the high-yield Metrics Income Opportunities Trust (ASX: MOT) earlier this month. It pays a 9% dividend yield from a diversified portfolio of private credit investments.

But there's another similar stock which I think is just as good: Metrics Master Income Trust (ASX: MXT).

What does Metrics Master Income Trust do?

The Metrics Master Income Trust is a listed investment trust (LIT) which gives direct exposure to the Australian corporate loan market. This is a space currently dominated by regulated Australian banks.

Rather than owning a portfolio of ASX shares, the trust has a portfolio of corporate loans and private credit investments (an increasingly popular asset class for income-focused investors) and currently manages around $30 billion in assets.

Its goal is to provide investors a monthly cash income with reduced capital volatility. It also aims to give attractive risk-adjusted returns from a diversified portfolio and diversification into Australian corporate fixed income.

What passive income does the ASX stock pay?

Metrics Master Income Trust said it targets a return of the Reserve Bank cash rate plus 3.25% per annum through the economic cycle. This is net of around 7.10% per annum fees. Distributions are paid monthly and there is also a distribution reinvestment plan (DRP), which allows its investors to reinvest their monthly income distributions.

The Trust's latest payout in February was 1.17 cents per share, unfranked. This was paid out to investors on the 9th of March. The latest dividend means that the fund has paid 12 dividends to investors over the past 12 months totalling 15.5 cents per share. At the time of writing, this gives the trust a dividend yield of 8.12%.

At the close of the ASX on Tuesday afternoon, the passive income stock's shares are 1.6% higher for the day, at $1.91 a piece. However the shares have declined 4% over the past month, and they're now 2.8% lower than this time last year.

Despite being in the red over the past month, the trust has still outperformed the S&P/ASX 200 Index (ASX: XJO) which is down 7% over the same period. 

However, over the longer-term, the investment trust has underperformed the index. The ASX 200 is 5.65% higher than this time last year. 

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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%.

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.

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The reason for that is the nation's tax rules, which favour dividends as the method of returning capital to shareholders over other channels, such as buybacks.

Many dividends in Australia come with franking credits, which allow the recipient to avoid paying income tax on that cash because corporate tax has already been levied on it.

The avoidance of double taxation, while not unique to Australia, is a privilege not seen in many comparable countries.

Anyway, back to the stocks themselves.

If you're interested in generating a reliable income, the myriad of choices makes it difficult to figure out which stocks to buy.

To assist with that search, I've picked out four ASX income stocks that I think are looking pretty good right now:

The king among banks and a king of the kings

It would be remiss to not mention ASX bank shares in a conversation about reliable income generators.

Australian banks, regardless of what you think of them as a consumer, pay out decent and consistent dividends throughout the economic cycle.

At the moment, the best dividend yield among the major banks can be found with ANZ Group Holdings Ltd (ASX: ANZ), which pays out 6% that's roughly half-franked.

Check out this consistency:

For a stock that pays out a bit more, one can't go past Yancoal Australia Ltd (ASX: YAL).

While resources companies can be notoriously volatile because of global commodity prices, this coal miner managed to hand out a sensational fully franked 11.3% yield even after a lean 2023.

That's almost double the income generated by ANZ.

What's more, the experts are loving the outlook for Yancoal right now. Broking platform CMC Invest shows that all four analysts that cover the stock reckon it's a buy.

The income stocks making money from global demand

Metrics Income Opportunities Trust (ASX: MOT) puts money into private credit "and other" investment opportunities.

And this stock has an absolutely remarkable dividend habit.

Firstly, it pays out monthly, rather than just twice a year.

Secondly, adding up the past 12 dividends gives it an impressive yield of 9.2%. If you go back the last three years of monthly payouts, the yield is around 8%.

Its critics do point out the nature of the underlying investments is a bit too mysterious for their liking, but Metrics' track record of generating consistent and regular income is indisputable.

Conflicts in Ukraine and the Middle East in recent years have emphasised how traditional energy sources are still needed to keep the lights on while the world builds up its renewable generators.

Woodside Energy Group Ltd (ASX: WDS) is, therefore, in prime position to take advantage of this demand.

Similar to Yancoal, low commodity prices in 2023 meant Woodside didn't necessarily have its best year.

But the Australian company kept paying out dividends as best as it could, to still maintain a yield of 7.1%.

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Moreover, you could cash in a chunky dividend yield of 11%.

Don't believe me? Check this out.

Reduced dividend, but still 11.9% yield

In recent times, Yancoal Australia Ltd (ASX: YAL) has developed a reputation as one of the largest dividend payers on the ASX.

The coal mining outfit, however, last month downgraded its latest distribution.

The 32.5-cent final dividend due to be paid in April is less than half the 70 cents paid at the same time last year.

However, the yield still stands at an amazing 11.9%, fully franked no less.

While the coal market can be notoriously cyclical, Yancoal has done all it can under its control by improving production in each successive quarter in 2023.

"We expect to carry this operational momentum into 2024," said chief executive David Moult during reporting season.

"The group is in a robust financial position, with no external loans, $1.8 billion of franking credits available, and a net cash balance that we expect will increase each month."

It's no wonder all four analysts covering the stock are rating it as a buy, as shown on CMC Invest.

Passive income machine

Metrics Income Opportunities Trust (ASX: MOT) is not widely discussed in the financial press, but it has been going about its business with aplomb the last five years.

In fact, ever since its recovery from the COVID-19 crash, the trust has managed to maintain its share price without much volatility, all while paying out a monthly dividend.

Yes, you read that right. It pays an income each calendar month.

Right now, the last 12 payouts are equating to an unfranked yield of 9.2%.

While there is some criticism of the opaque nature of its unlisted investments in "private credit and other assets", its track record can't be denied.

Grab the cash now, or later

So at current prices, you could buy 456 shares in Metrics Income Opportunities Trust for $1,000 and 171 Yancoal shares with the other grand.

And with a combined yield of 10.55%, that's $211 of annual passive income from an outlay of just $2,000.

That will pay for a nice birthday present for your spouse, the car registration, or your mobile phone plan each year.

However, if you reinvest the returns and add a further $200 to the portfolio each month, you could be really raking it in after a little while.

Ten years of such restraint, assisted by monthly compounding, will see the nest egg grow to more than $48,000. And that's just from dividend income, not counting capital gains.

From then on, if you stop reinvesting the 10.55% yield, you have yourself $5,064 in your pocket every year.

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Sound too good to be true? Believe it or not, such stocks do exist. 

Metrics Income Opportunities Trust (ASX: MOT) and Metrics Master Income Trust (ASX: MXT) have exactly the attributes just mentioned.

They are investment trusts that pay out distributions every month, at 9.38% and 9.08% dividend yield respectively.

The Master Income Trust has been on the ASX since October 2017. Its share price has not varied much from just above $2, save for two short downward spikes during the COVID-19 crash and June 2022.

The Opportunities Trust has been publicly traded from May 2019, and has also consistently kept its price just north of $2.

Protect your capital and rake in 9% income. There has to be a catch, right?

One curious investor asked this very question to Shaw and Partners portfolio manager James Gerrish:

'Delivering consistent monthly income'

Gerrish admitted that his income fund had actually held Master Income Trust but had recently sold.

"Both funds have performed well and have been true to their mandate, delivering consistent monthly income," he said on a Market Matters Q&A.

"We have not considered MOT for many of the same reasons as why we sold MXT."

The trouble with these two shares, for Gerrish's team, is the lack of information on the nature of investments held.

"Investors have low visibility on the positions held within the trust and performance is yet to truly be tested in periods of economic distress. 

"MOT also looks to earn capital gains out of debt, banking on improving credit quality or credit spreads, while having a high-performance fee rate if it beats the hurdle which further adds to the risk the trust takes on"

He did acknowledge that Metrics are "great managers" with "a strong track record".

"But we prefer to hold more transparent positions."

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