The ASX share market is suffering from heavy volatility as investors come to grips with the trade war that President Donald Trump has sparked with China, the EU and many other countries. This could be an excellent time to invest in ASX dividend shares.
Amazingly, the Nasdaq Composite (INDEXNASDAQ: .IXIC) has now dropped 22% since 19 February 2025. I'm not about to say that the US tech shares are great dividend stocks, but the decline shows there's some pain out there.
When the share prices of ASX dividend shares fall, the dividend yields get a boost. For example, if a dividend stock with a 6% dividend yield falls 10%, the dividend yield becomes 6.6%.
Let's get into two excellent opportunities I'm seeing right now.
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GQG Partners Inc (ASX: GQG)
The GQG share price has fallen 25% (at the pre-open price) since 17 February 2025. As a funds management business, the company is particularly exposed to share market declines because of the hit to funds under management (FUM).
Lower FUM means lower revenue and lower profit for GQG. However, I think the hard drop also gives it a bigger opportunity to bounce back when confidence improves again.
I'm not expecting a share market recovery in April, it could take more than a year. But I'd call GQG one of the best equity fund managers in the world. I believe the investment team has demonstrated they have the skills to outperform various benchmarks over the long-term, which is likely to help GQG retain existing FUM and attract new client money.
It's difficult to forecast what the near-term dividends will be because the (volatile) FUM balance will play an important role in how much profit it's able to generate in 2025.
However, the last four dividends paid by the ASX dividend share translate into a dividend yield of 7.8%. That's a solid starting yield, in my eyes.
Nick Scali Limited (ASX: NCK)
This ASX dividend share sells furniture in Australia and the UK. Most of its earnings are generated in Australia at this stage.
The Nick Scali share price has fallen by around 15% since 17 February 2025, so it has entered a correction.
Its businesses in Australia, Nick Scali and Plush, could remain more resilient than investors are giving it credit. This is because of the strength of the Australian economy and households that may buy a sofa from Nick Scali.
Nick Scali has a strong track record of paying dividends to shareholders over the past five years. This is good news for passive income investors.
I think this ASX dividend share has strong long-term potential. It plans to roll out dozens of more stores in Australia in the coming years. The UK opportunity is also large if it's able to establish a solid market position there after acquiring a business there called Fabb Furniture.
The last two dividends declared by the business come to a grossed-up dividend yield of 6%, including franking credits.
