I always have my eye open for ASX dividend-paying shares which pay a good passive income to their shareholders.
Most ASX stocks pay their investors twice-yearly dividends, some hand out quarterly payments, and then there are a select few which distribute passive income every single month.
And their dividend yield ranges wildly too. The average dividend yield on the Australian share market currently sits around 3.5%. These are usually blue chip companies and major heavyweights which are considered stable and low-risk.Â
These are the companies with a stronger cash flow, which operate in more cyclical industries, but which comes with additional risk. These could yield around 5% or 6%.
Then there’s high-yielding companies, which come with even greater risk, and are usually highly cyclical, which can yield over 10%.
But what if I told you that it’s possible to get the best of both worlds. A stable ASX stock at a good yield, and which pays monthly dividends.
Here’s my passive income pick
The Metrics Income Opportunities Trust (ASX: MOT) is a listed investment trust (LIT) with a diversified portfolio of private credit and other related opportunities.
It means that investors can get direct exposure to private credit investments. This is becoming an increasingly popular asset class for income-focused investors.
What passive income does it pay its shareholders?
The Metrics Income Opportunities 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.
It also has a distribution reinvestment plan (DRP), which allows unitholders to reinvest monthly income distributions.
The ASX dividend stock’s most recent payout was 1.16 cents per security, paid in late-May.
The latest payout followed 1.22 cents per unit paid to shareholders in late April. The Fund also paid out 1.09 cents per unit in March, 0.92 cents in February, and 1.22 cents in January.
Over the past 12 months, the Metrics Income Opportunities Trust has paid out 12 dividends that total 15.4 cents per share (unfranked). Using the $1.70 share price at the time of writing, this means the LIT currently has a dividend yield of around 9%.
How is its share price tracking?
The Metrics Income Opportunities Trust share price is down around 9% for the year-to-date and 14% lower than 12 months ago, at the time of writing.
The annual decline means it has underperformed the All Ordinaries Index (ASX: XAO). Over the same 12-month period, the All Ords Index has risen around 4%, at the time of writing.
The post Passive income investors take note: This monthly-paying ASX stock yields 9% appeared first on The Motley Fool Australia.
Should you invest $1,000 in Metrics Income Opportunities Trust right now?
Before you buy Metrics Income Opportunities Trust shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Metrics Income Opportunities Trust wasn’t one of them.
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* Returns as of 20 Feb 2026
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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.