The ASX dividend stock GQG Partners Inc (ASX: GQG) has declined heavily – it's down 38% from November 2024. This sell-off could be a great opportunity to pick up a beaten-down stock with a big dividend yield.
It's normal for fund managers to go through volatility, particularly when their investment funds underperform their benchmark over the short term. GQG's main earnings base is its four key strategies – US shares, global shares, global shares excluding US shares and emerging market shares.
In a move I'd describe as prudent, GQG has positioned its portfolios to be more defensive and protect capital. Considering the share market could just as easily go down from the AI hype, I think the move makes sense. GQG could outperform rapidly if the market were to drop.
There are a few reasons why I think this is the right time to invest.
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Oversold?
I mentioned at the start of this article that the ASX dividend stock has fallen by 38% from November 2024.
It reported its funds under management (FUM) was US$159.4 billion at the end of October 2024. At the end of August 2025, it had US$167.6 billion of FUM. So, its FUM has risen during the time of the large GQG share price decline.
FUM is the key driver of the company's profit. Its revenue is almost entirely based on asset-based management fees rather than performance fees. With revenue potential higher than it was in November 2024, it's interesting the ASX dividend stock has fallen so much.
Net flows are going in the wrong direction, but they could just as quickly turn positive if investment performance returns to outperformance again. The business has delivered outperformance over a significant portion of the last several years, so I think it's too pessimistic of the market if it's expecting net outflows for the foreseeable future.
Big dividend yield
The business has an incredibly high dividend yield compared to most other investments on the ASX.
GQG trades on a low price/earnings (P/E) ratio, which is typical for the funds management industry. This enables the business to have a particularly high dividend yield when combined with its generous dividend payout ratio.
The company's current annualised dividend yield is around 9%, which could beat the return of the S&P/ASX 200 Index (ASX: XJO) through the cash payments alone.
Long-term potential
One of the main appealing aspects of the business is that it has relatively low management fees for an active fund manager. I think this will continue to attract clients looking for investment strategies which are different to the benchmark.
While recent performance by its main funds has been disappointing, as of June 2025, it showed that its US shares, global shares, international shares excluding the US, and emerging market shares had all outperformed their benchmarks since inception.
The organic growth of the share market's value helps increase the FUM, so if/when GQG can stem the outflows, the ASX dividend stock could produce a pleasing performance for shareholders.
