How to make income every month with $10,000 and these 2 ASX dividend stocks

If it's monthly passive income you're after, you're likely aware that most ASX dividend stocks only pay out a slice of their profits twice per year.

That money generally lands in eligible shareholders' bank accounts a month or so after the companies report their half-year and then their full-year financial results.

But there are a handful of companies that do pay out on a monthly basis.

So, if you're looking for monthly passive income with a $10,000 investment, here are two ASX dividend stocks to consider.

Two ASX dividend stocks paying every month

First up, we have the BetaShares Australian Dividend Harvester Fund (ASX: HVST).

This ASX dividend stock is, more precisely, an exchange-traded fund (ETF). As such, it offers investors instant diversity by investing in 40 to 60 high-yielding, blue-chip ASX shares.

Currently, its top three holdings are Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Limited (ASX: CSL).

The portfolio is actively managed and rebalanced every three months or so to offer exposure to higher-yielding ASX dividend stocks. That service comes with a 0.72% annual management fee.

As at 30 November, the ETF had a 12-month trailing yield of 7.1%, 80.2% franked. The 12-month grossed-up yield, which includes franking credits, works out to 9.6%.

The HVST share price is up 2% over the past 12 months. And, of course, the ETF pays out dividends every month.

Which brings us to our second ASX dividend stock that offers passive income investors a monthly paycheque.

Namely, Plato Income Maximiser Ltd (ASX: PL8).

Technically PL8 is a listed investment company (LIC). As with HVST above, this LIC holds a diversified portfolio of blue-chip Australian shares with an income focus.

As at 30 November, PL8 delivered a 12-month grossed-up yield of 7.7%, with its dividend payouts 100% franked.

The Plato Income Maximiser share price has been flat over the past 12 months.

To the maths

If I were to split my $10,000 investment evenly between these two ASX dividend stocks, I'd earn an average grossed-up trailing yield of 8.65%.

That would see me earning $865 a year in passive income. Or (on average) $72 every month.

The post How to make income every month with $10,000 and these 2 ASX dividend stocks appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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