I love finding ASX growth shares with a compelling outlook for rising earnings. If they're also growing their dividend payments, then that's a useful bonus for (early) retirement.
Retirees need cash flow to afford their basic living expenses as well as any desired discretionary products or services.
Companies that reward shareholders with rising payouts mean investors don't need to sell their shares to access the benefits of the growing profits.
Here are two ASX growth shares that I think have a good long-term outlook, with exciting international potential.
GQG Partners Inc (ASX: GQG)
GQG is a US-based funds management business that offers investment products across four main strategies: US shares, international, global, and emerging market shares. It also has other strategies, including dividend shares.
The ASX growth share has delivered an impressive level of funds under management (FUM) growth in its listed life so far. In 2024 alone, it has seen its FUM rise from US$120.6 billion at December 2023 to US$155.6 billion at June 2024.
A vast majority of GQG's revenue comes from management fees rather than performance fees, so FUM growth is integral to the company's future success.
While some of its FUM growth comes from investment performance, a significant portion is coming from net inflows. It experienced net inflows of US$6.5 billion in the three months to 30 June 2024.
It aims to expand in other geographies beyond the United States, including Canada and Australia, expanding its addressable market.
GQG is also expanding its potential growth through the launch of a private capital business.
According to the estimate on Commsec, the company is projected to pay a dividend yield of 7.8% in FY25.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a leading retailer of affordable jewellery in Australia and across the world, aimed at younger shoppers.
At 31 December 2023, the ASX growth share had 854 stores worldwide, 679 of which were outside of Australia.
Considering the low-cost nature of its products, it's easy for Lovisa to roll out more stores around the world. In the HY24 result, it grew by 139 stores year over year, a rise of almost 20%. HY24 revenue increased 18.2% to $373 million. Pleasingly, its interim dividend was hiked by 31%.
Profit keeps rising, despite Lovisa's ongoing investment costs of opening new stores in new and existing markets. Some of the newest places it has expanded into include Taiwan, mainland China, Vietnam, Botswana, Spain, United Arab Emirates and Ireland.
I believe the ASX growth share's increasing scale will deliver strong operating leverage in the next few years.
According to the forecast on Commsec, it's valued at 28x FY26's estimated earnings with a possible dividend yield of 2.9%. The dividend per share is projected to grow by 32% between FY24 to FY26.
