1 ASX dividend stock down 30% I’d buy right now

The ASX dividend stock GQG Partners Inc (ASX: GQG) has fallen close to 30% since its February 2025 peak, as the chart below shows. Despite its strong rise since November 2025, I think it could still be undervalued at this level.

GQG is a fund manager that’s headquartered in the US, but it also has a geographic presence in a number of other markets including Australia, the UK and Europe.

The ASX dividend stock offers four main strategies for investors – US shares, global shares, international shares (excluding US shares) and emerging market shares.

There are a couple of reasons why I think the ASX dividend stock could still be a solid, underrated buy.

Low earnings multiple

Fund managers normally trade on a lower price/earnings (P/E) ratio compared to other sectors, but I think GQG’s P/E ratio is particularly depressed.

The business regularly reports to investors about its funds under management (FUM), which is the key factor for generating profit because nearly all of its earnings are based on management fees rather than performance fees.

GQG regularly pays a large dividend to investors each quarter. In October, it declared a quarterly dividend of 5.6775 Australian cents, which was 90% of the company’s estimated third-quarter distributable earnings. That implies the GQG share price is only trading at 7x annualised earnings.

If the business can grow its earnings, it could be undervalued at this level.

Additionally, with such a low earnings multiple and such a high dividend payout ratio (of 90%), it can provide investors with a strong return through cash payments. Based on the latest quarterly dividend, it has an annualised dividend yield of 12.6%, at the time of writing.

If the business is able to maintain its dividend over the next 12 months, that level of passive income alone could outperform the S&P/ASX 200 Index (ASX: XJO).

Performance turnaround?

For a fund manager, the performance of its funds is key. GQG’s funds have recently underperformed due to taking a defensive position in an expensive market.

But, recently some of those high-flyers have gone backwards, and if GQG can own the right stocks going forwards it could lead to regaining client confidence and hopefully a slowing of FUM outflows (or even inflows).

In November 2025, the ASX dividend stock reported that its FUM grew by $2.4 billion to $166.1 billion, despite experiencing net outflows of $2.4 billion.

Prior to 2025, GQG had a long-term record of outperformance across its main strategies and I think the investment team have the skills to rediscover that track record.

The post 1 ASX dividend stock down 30% I’d buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.