I’d describe GQG Partners Inc (ASX: GQG) as a top ASX dividend share, it’s rising today. It could keep going up.
GQG is a US-based fund manager which offers investors around the world with a number of different investment strategies – international shares, global shares, emerging markets and US shares.
GQG funds under management (FUM) continues to flow
The fund manager reported today that its total FUM declined slightly to US$98.5 billion, down from US$98.6 billion in April.
It was the international shares strategy that suffered a US$500 million decline, while the others didn’t change much.
But, global share markets saw a decline, so it was positive for GQG that its FUM was US$98.5 billion was almost stable. So, the FUM total seems to have been supported by clients adding more money into the ASX dividend share.
In the first four months of 2023 to April, it experienced net inflows of $5.4 billion, while the 2023 net inflows to May 2023 were $5.9 billion, so the fund manager experienced $500 million-ish of net inflows.
My thoughts on the ASX dividend share and GQG share price
GQG shares are still down around 10% from the end of January 2023 amid uncertainty about the economic situation.
This could be a good time to look at the ASX-listed fund manager because it is still attracting strong inflows, generating good long-term performance, and committed to paying a very good dividend.
GQG aims to pay 90% of its distributable earnings out as a dividend. CMC numbers suggest that GQG could pay an annual dividend per share of 14.1 cents, which is future dividend yield of 10% if that’s what it pays.
The fund manager could pay a dividend yield alone that beats the market. If its earnings grow as FUM grows, then this could boost the valuation, because it isn’t priced for much medium-term growth.
I believe that GQG’s investment style is likely to deliver capital growth for its funds, which can be a natural boost for earnings as FUM rises.
It’s one of the ASX dividend shares I think can outperform over the next few years.
