Often, when we look at ASX shares, there are a lot that are classified as either ASX dividend shares or ASX growth shares. What about if there are businesses that can deliver both dividends and growth?
Receiving dividends is great because it's useful cash flow for our finances.
Meanwhile, earnings growth is powerful because it can help send the share price higher and fund higher payouts.
When businesses are providing a pleasing dividend payout ratio, it can reduce their growth rate, but both of the following businesses seem to be delivering impressive growth despite sending a lot of profit to shareholders each year.
GQG Partners Inc (ASX: GQG)
GQG is a fund manager headquartered in the US, though it has geographic exposure to other places, including Canada, the UK, and Australia. The ASX share offers several different investment strategies, including US shares, global shares, non-US international shares, and emerging market shares.
There are a few key drivers for the success of a fund manager, and I think GQG is executing very well. It needs to deliver good investment returns with its funds, which helps grow the funds under management (FUM) organically and ensures clients want to stay.
The success of a fund manager is also affected by net flows. GQG is currently seeing US$1 billion of net inflows each month, helping its FUM grow at a good pace.
In the FY24 result, for the 12 months to December 2024, GQG reported its average FUM grew 45.4% to US$148.2 billion, distributable earnings increased 50.4% to US$447.9 million, and the dividend per share was hiked by 50.2%.
Since December 2024, when the FUM balance was US$153 billion, FUM rose a further 6.9% to the end of April 2025 (and share markets have climbed since then).
According to Macquarie, it's projected to pay a dividend yield of 11.6% in FY26.
Universal Store Holdings Ltd (ASX: UNI)
This ASX share is a retailer of premium apparel through several different businesses, including Universal Store and Perfect Stranger.
The company is delivering growth in multiple ways, thanks to strong like-for-like sales with its existing store network and the addition of new stores. In the FY25 first half, the business delivered sales growth of 16.1% to $183.5 million and underlying net profit after tax (NPAT) growth of 16% to $23.2 million.
That profit growth allowed the business to increase its interim dividend per share by 33.3% to 22 cents.
The business has expectations to add (at least) five new stores in the second half of FY25. I think Perfect Stranger could help the ASX share deliver much larger profits and dividends in the coming years.
According to Commsec, Universal Store is expected to pay a grossed-up dividend yield of 7.6% in FY26, including franking credits.
