For monthly income, an 8.8% ASX dividend share to consider

ASX dividend shares are a great option for Aussie investors looking for reliable income, stability, and long-term growth potential.

There are several companies that pay their investors every quarter, every six months, or every year. ASX dividend shares that pay out every single month are a much rarer find. 

The most popular three are the BetaShares Dividend Harvester Active ETF (ASX: HVST), Plato Income Maximiser Ltd (ASX: PL8), and Metrics Master Income Trust (ASX: MXT). They all offer a reliable monthly income at a good rate.

But there is another ASX dividend share that I think Aussie investors should consider: The BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX).

What is YMAX?

The Betashares YMAX is an ASX-listed exchange-traded fund (ETF) that is designed to generate an attractive income. It targets the 20 largest Australian shares on the ASX. 

The fund uses a covered call strategy to generate extra income that is typically higher than dividend yields alone. It generally offers lower volatility than a direct investment in the underlying shares. It does not aim to track an index.

What does its portfolio look like?

The ASX dividend share invests in a portfolio that provides exposure to the largest 20 Australian securities listed on the ASX, combined with call options written on the securities in the share portfolio.

The portfolio is passively managed, which means that the weighting of each security will generally mirror the weighting of the security within the Solactive Australia 20 Index, Betashares explains. It also aims to generate dividends, franking credits, and some capital growth. 

It is most heavily weighted into the financial sector (45.7%) and the materials sector (20.8%). 

And as of the 30th of January this year, the top four holdings in its portfolio are Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), and National Australia Bank Ltd (ASX: NAB).

The portfolio is most heavily weighted into CBA and BHP shares at 15.5% and 15.1% respectively. It is also weighted 8.2% into both Westpac and NAB.

What are the ASX dividend share’s payouts?

When it comes to monthly payouts, the Betashares YMAX is relatively new to the table. Since its inception in April 2013, the fund has been paying quarterly dividends to its shareholders.

But effective from January 2026, the intended distribution frequency of the fund has been amended from quarterly to monthly.

As at 30 January 2026, the Betashares YMAX has a 12-month gross distribution yield of 8.8% and a 12-month distribution yield of 7.4%. The total 12-month franking level is 42.7%.

The fund paid its last quarterly dividend on 19th January. It paid shareholders $0.13247 per share with 31% franking.

Its first-ever monthly dividend payment was paid on the 17th of February, where it handed investors $0.035221 per unit. This came with 37.97% franking. This translates to an annual distribution return of 7.64%.

The fund has confirmed a $0.050699 per unit dividend, with 32.88% franking, will be paid on the 17th of March.

The post For monthly income, an 8.8% ASX dividend share to consider appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.