Monthly-paying dividend stocks are the bees knees for passive-income-hunting investors.
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.
The post Passive income investors: This ASX stock has an 8% yield and monthly payouts appeared first on The Motley Fool Australia.
Should you invest $1,000 in Metrics Master Income Trust right now?
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* Returns as of 20 Feb 2026
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More reading
- Passive income investors: This ASX stock has a 9% yield with monthly payouts
- 3 ASX monthly dividend stocks yielding over 5%
- Passive income: How much would I need to invest in ASX shares to earn $1,000 every month?
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.