These 2 ASX dividend shares are top buys for income in October

I rate both of these income stocks as a buy.

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Key points

  •  Following a significant share price drop, GQG offers a high 9% dividend yield, driven by its FUM-based revenue.
  • Bailador Technology Investments offers an 8.1% grossed-up dividend yield, with exciting capital growth potential from its diverse tech portfolio.
  • Both companies present strong dividend yields and are seen as undervalued, offering substantial potential for both income and capital growth.

There are a few ASX dividend shares that I've got my eyes on for potential buys. I like finding investments that can deliver a strong dividend yield and long-term capital growth.

I'm expecting to put some new money into one or both of the businesses I'll outline in this article.

When companies are significantly undervalued, their dividend yields can be particularly high.

The two businesses I'll outline seem like great value bargains and I'm expecting massive dividends in the coming year.

GQG Partners Inc (ASX: GQG)

As the chart below shows, the GQG share price has declined significantly since July 2025, the business now seems dramatically cheaper.

As a fund manager that generates nearly all of its revenue from management fees, changes in the funds under management (FUM) make the main difference to its financials.

At the end of June 2025, the ASX dividend share had US$172.4 billion of FUM and at the end of August 2025 it had FUM of US$167.6 billion. That's a decline of just 3%, compared to a much larger drop in the GQG share price.

The fund manager has a track record of delivering outperformance with its main investment strategies over the long term – it has only been the very short term where there have been difficulties as the fund manager focused on a more conservative portfolio setting due to high global valuations. I think this prudent move may pay off.

Either way, the large decline of the GQG share price has led to an enormous dividend yield. It currently has a dividend yield of around 9%, which I think could grow if the business returns to outperforming its benchmarks. Until that happens, it's delivering a very strong payout.

Bailador Technology Investments Ltd (ASX: BTI)

This is one of my favourite ASX dividend shares right now because of the exciting potential for capital gains, while also providing a huge dividend yield.

First, we'll talk about the dividend yield.

The business aims to pay a dividend yield of 4% (or 5.7% grossed-up for franking credits) on the company's pre-tax net tangible assets (NTA). But, due to the fact it's trading at a huge discount to its NTA, it had an 8.1% grossed-up dividend yield when it announced its FY25 result, including franking credits.

What makes up its NTA? Bailador invests in a portfolio of technology companies that have strong growth potential thanks to their large addressable markets, the ability to generate repeat revenue and strong profit margins.

Its software portfolio is spread across areas like travel and accommodation, wealth management, digital healthcare, travel experiences, volunteer management, property investment and fitness studio management.

In the FY25 result, the company reported its portfolio of companies delivered revenue growth of 47%, which is incredibly strong and bodes well for future increases in the valuations of those companies, in my view, which could then spur larger dividend payouts from Bailador.

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments. The Motley Fool Australia has recommended Bailador Technology Investments and Gqg Partners. 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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