An ASX dividend stock that is currently yielding more than 4.5%? And that pays out monthly? That would grab my attention any day.
For starters, it is increasingly difficult to find reliable shares on the ASX that offer a dividend yield anything like 4.5% today. The recent record high that the S&P/ASX 200 Index (ASX: XJO) has enjoyed is no doubt going down well with Australian investors. However, high share prices come with the double edge of lower dividend yields.
That's partly why many popular blue chip shares that have traditionally been sought for dividend income aren't coming close to 4% right now. That includes Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and Coles Group Ltd (ASX: COL).
That's the case even with the other ASX big four banks. Only ANZ Group Holdings Ltd (ASX: ANZ) comes close to 4.5% with its 4.37% yield (at the time of writing).
But Plato Income Maximiser Ltd (ASX: PL8)? Well, investors are currently being presented with a trailing dividend yield of 4.55% right now.
An ASX monthly dividend stock with a 4.55% yield?
Plato is a listed investment company (LIC). That means its job is to manage an underlying portfolio of investments on behalf of its shareholders. In Plato's case, this underlying portfolio is made up of other dividend-paying blue chips. Most of the names mentioned above are currently in the portfolio. They are joined by Macquarie Group Ltd (ASX: MQG), JB Hi-Fi Ltd (ASX: JBH), Transurban Group (ASX: TCL), and more.
Plato is able to use proceeds from rebalancing its portfolio, as well as the income these investments tip into its coffers, to fund its own dividends. These dividends arrive in investors' bank accounts 12 times a year. Yes, Plato is one of the ASX's rare monthly dividend payers.
This ASX dividend stock has provided consistent payouts for years now. Investors have enjoyed a monthly dividend of 0.55 cents per share over the past 12 months. Each of those 12 payouts has come with full franking credits attached too. That 12-month total of 6.6 cents per share gives Plato that trailing dividend yield of 4.55% that we see today (as of yesterday's closing prices anyway).
No dividend stock can be completely relied upon to provide income going forward. However, I think this company's robust underlying portfolio, as well as its consistent payout history, give it a lot of good grace. If you're looking for a relatively high-yield investment in today's market, I would recommend checking Plato Income Maximiser out further.
The post 4.55% yield: I'd buy this monthly ASX dividend stock today appeared first on The Motley Fool Australia.
Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser and Wesfarmers. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended Macquarie Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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