Are you looking for a steady stream of income without waiting for quarterly or half-yearly payouts? If so, monthly dividend-paying stocks could be the perfect fit for your portfolio. On the Australian Securities Exchange (ASX), only a handful of investment vehicles provide this regular income—and two of the top performers for FY26 are Metrics Master Income Trust (ASX: MXT) and Plato Income Maximiser Ltd (ASX: PL8).

These two listed investment products not only offer consistent monthly dividends, but also come with strong financials, sustainable income strategies, and a focus on risk management. Let’s take a closer look at why they stand out for income-focused investors in FY26.

1. Metrics Master Income Trust (ASX: MXT)

Steady Income from Private Credit

Overview

MXT is a listed investment trust managed by Metrics Credit Partners. Instead of owning shares or properties, MXT provides loans to Australian companies—filling the lending gap often left by traditional banks. These loans are primarily floating-rate, which means they benefit from rising interest rates.

In the first half of FY2025, MXT reported:

Revenue: $87.24 million

Net Income: $84.78 million

PE Ratio: 12.81

This shows a stable income stream with a lean cost structure. With income almost matching revenue, MXT clearly operates as an efficient pass-through vehicle.

Why Investors Love MXT

Here are the key growth drivers that make MXT a compelling monthly dividend stock:

• Rising Interest Rates: As central banks raise rates, MXT earns more from its floating-rate loans—meaning more income is passed to investors.
• Strong Loan Demand: Australian businesses, especially mid-sized firms, are increasingly seeking non-bank funding sources. MXT fills this gap efficiently.
• Low Default Rates: Credit losses have remained minimal over the years, boosting investor confidence.
• Diversified Portfolio: Exposure across various sectors and companies limits risk, ensuring income consistency.

Dividend Snapshot

Monthly Dividend: $0.01 per share (latest payout)

Dividend Yield (TTM): 7.78%

MXT doesn’t just deliver regular income—it delivers a strong yield that surpasses many fixed-income alternatives or term deposits.

Macro Outlook

MXT is well-positioned for FY26. Rising interest rates are working in its favor, and the trust’s diversified loan book is showing resilience with minimal impairments.

Final Verdict

If your goal is to earn passive income every month with minimal volatility, MXT is a standout. Its high yield, institutional-grade loan exposure, and low credit risk make it a reliable income-generating asset—especially in a rising rate environment.

2. Plato Income Maximiser Ltd (ASX: PL8)

Active Equity Strategy for Monthly Dividends

Overview

PL8 is a listed investment company that holds a dynamic portfolio of high-dividend Australian stocks. It’s tailored for investors—especially retirees and SMSFs (Self-Managed Super Funds)—seeking monthly, tax-effective income. PL8’s focus is on capturing dividends and associated franking credits from ASX-listed companies.

In the first half of FY2025, PL8 reported:

Revenue: $28.56 million (up 9.5% YoY)

Net Income: $39.71 million

PE Ratio: 14.06

These numbers highlight solid earnings growth and a disciplined investment process.

Key Growth Drivers

Here’s what powers PL8’s ability to generate stable, monthly income:

1. Dividend Rotation Strategy: PL8 actively rotates its portfolio into stocks about to pay dividends. This tactic helps it collect income from multiple sources throughout the year.
2. Fully Franked Dividends: Most of its holdings provide franking credits, increasing after-tax returns—particularly useful for SMSFs and retirees.
3. Market Recovery: As earnings across the ASX improve, PL8’s underlying holdings are expected to pay more and larger dividends.
4. Growing Retiree Demand: The demand for consistent income from a growing retiree population continues to support PL8’s relevance and appeal.

Dividend Snapshot

Monthly Dividend: $0.01 per share (latest payout)

Dividend Yield (TTM): 4.77%

While the yield is slightly lower than MXT’s, the franking credits and equity exposure add a different dimension to income generation.

Macro Outlook

PL8 is well-positioned for a recovering market. Its strategy enables it to harvest dividends even in volatile conditions. As companies return to growth and resume or increase dividend payments, PL8 is likely to benefit directly.

Final Verdict

For those wanting monthly dividends with franking credits, PL8 offers an ideal blend of income and tax efficiency. It takes the hassle out of active dividend investing, giving you smooth and regular cash flow without having to manage individual stocks.

Final Thoughts: Income Every Month—Not Every Quarter

In FY26, Metrics Master Income Trust (MXT) and Plato Income Maximiser Ltd (PL8) stand out as two of the top ASX-listed income stocks offering monthly dividends.

Both funds are tailored for different types of investors. If you’re looking for a high, stable yield with lower risk, MXT could be the one. If you’re after franked dividends and equity exposure, PL8 might be your pick.

No matter which one you choose, both stocks offer something rare on the ASX: consistent monthly income.

So, if you’re tired of waiting months for your next dividend—and want reliable cash hitting your account every 30 days—these two monthly payers deserve a spot on your FY26 watchlist.

Disclaimer:

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