Finding an ASX share that offers both a double-digit dividend yield and meaningful capital growth isn't easy. Often, the highest-yielding ASX dividend shares are cheap for a reason, while the fastest-growing companies pay little or no dividend at all.
But there are a few exceptions.
Here are two ASX dividend shares offering forecast yields of around 10%, accompanied by analyst forecasts of up to 25% upside over the next 12 months.
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GQG Partners Inc (ASX: GQG)
GQG Partners has endured a difficult year. The ASX dividend share has fallen around 35% over the past 12 months, leaving the fund manager trading on what many investors would consider a compelling valuation.
GQG manages active investment strategies focused on international shares, emerging markets, US equities, and global equities. The business generates strong cash flow through management fees and has built a reputation for returning a large portion of profits to shareholders. In fact, GQG currently distributes approximately 90% of its distributable profit as dividends.
That generous payout policy, combined with the weaker share price, has pushed the stock's annualised dividend yield to an eye-catching 11.7% based on its latest quarterly dividend.
The quarterly payment schedule is another attraction for income investors, providing more frequent cash flow than the typical twice-yearly dividend.
Despite the recent weakness in the share price, the business itself remains highly profitable. The stock is currently trading on a price-to-earnings ratio of around 6.5, well below many other high-quality financial companies.
Importantly, analysts also see recovery potential. Consensus price targets imply more than 30% upside, offering investors the rare combination of a generous income stream and potential capital gains.
IPH Ltd (ASX: IPH)
IPH is one of the ASX's quieter dividend performers. The share price has been under pressure last year, losing 18% at the time of writing.
The company provides intellectual property services, including patents, trademarks, portfolio management, and enforcement through a network spanning 25 countries across 10 jurisdictions. It is the largest IP services provider in the Asia-Pacific region.
One of IPH's biggest strengths is its remarkably dependable cash generation. During its first-half FY26 results, the ASX dividend share reported cash conversion of 101%, highlighting the resilience of its business model.
Strong cash flow has supported steadily rising dividends over many years. The latest interim dividend increased 11.8% to 10 cents per share, reflecting management's confidence in the business.
Based on current forecasts, IPH is expected to pay fully franked dividends totalling 38 cents per share in FY26. At the current share price, that equates to a forward dividend yield of just over 10%.
Analysts also believe the shares have room to climb from here, with consensus price targets suggesting more than 25% upside.
Foolish takeaway
High yields often come with elevated risks, so investors should always look beyond the headline dividend.
In the case of GQG Partners and IPH, however, both companies continue generating strong cash flow while trading at relatively modest valuations.
That combination has created an unusual opportunity: ASX dividend shares capable of delivering attractive passive income today while also offering the potential for meaningful capital growth over the year ahead.
For investors seeking both income and upside, these two stocks could be well worth a closer look.
