This 1 monthly ASX dividend stock is a must buy today

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When it comes to passive income, ASX dividend stocks handing out a steady monthly payout is every investor’s dream.

While most ASX dividend stocks pay out annually or every six months, there are a handful that distribute money to investors on a monthly basis.

The Plato Income Maximiser Ltd (ASX: PL8) is one such stock. And the best part is its stock price has dipped slightly today, which means it is an opportune time for investors to get in on the action.

At the time of writing on Wednesday afternoon, the PL8 share price is down 1.05% to $1.42 per share. It’s not a significant decline, but given the PL8 share price has seen consistently steady growth over the past six months, it’s a rare opportunity.

Since a dip in early April, the PL8 share price has climbed 20.9% at the time of writing. For the year, it is 12.2% higher.

The ASX dividend stock has paid monthly dividends consistently since March 2018. Over the past 12 months, it has paid investors 0.55 cents per share, per month, totalling 6.6 cents over the year, fully franked. At the current price of $1.42 per share, PL8 gives a trailing dividend yield of 4.6%.

What is PL8, and what does its portfolio look like?

PL8 is a listed investment company (LIC) that holds a portfolio of underlying investments, which it manages on behalf of its shareholders.

PL8 is designed specifically with SMSF and pension-phase investors in mind. Its investment strategy targets these income-focused investors who need a dependable income stream, with the goal of outperforming a benchmark index over a 3 to 5-year investment cycle.  

The ASX dividend stock holds a portfolio of mature ASX-listed shares that have been selected for their income-paying abilities, including major banks, mining giants, and energy firms. It aims to consistently deliver above-market dividends and total returns, including franking credits. 

For example, as of 31 August this year, its portfolio includes holdings in heavyweights such as ANZ Group Holdings Ltd (ASX: ANZ) and CSL Ltd (ASX: CSL). It also includes high-yielding stocks such as Yancoal Australia Ltd (ASX: YAL), Origin Energy Ltd (ASX: ORG), and Wesfarmers Ltd (ASX: WES).

To me, it appears that PL8 has a strong portfolio of high-yielding shares poised for growth. And its consistently reliable monthly payout is an asset to any investor’s portfolio, which is why I think the ASX dividend stock is a must-buy today.