Magellan Financial Group vs GQG Partners shares

When it comes to picking ASX-listed fund managers, Magellan Financial Group Ltd (ASX: MFG) and GQG Partners Inc (ASX: GQG) stand out as two big names vying for investor attention. Both are global equities managers with well-known brands and diverse client bases, but recent share price volatility and shifting fundamentals have made this a much more interesting contest than it might have been a few years ago. If you’re weighing up Magellan Financial Group vs GQG Partners shares, here’s what sets them apart right now.

The case for Magellan Financial Group

Magellan Financial Group is an Australian-based diversified financial services group with its roots in global equities and infrastructure fund management. Founded in 2006, it recently made waves by merging with Barrenjoey Capital Partners, expanding into areas like investment banking and private capital. Magellan has faced considerable outflows from its flagship funds, underperforming peers and sparking a broader strategic reset—including outsourcing some global equities funds.

Looking at its fundamentals:

• Market cap of $2.47 billion
• Fully franked trailing dividend yield of 7.69%
• P/E ratio of 16.90
• Earnings per share of $0.500
• Year-to-date return of -8.8%

Franking is a standout here—Magellan’s dividends remain 100% franked, which may appeal for investors seeking tax-effective income. But it’s worth noting the dividend per share appears much lower than last decade’s peak, reflecting pressure on earnings.

The case for GQG Partners

GQG Partners operates as a global boutique asset manager focused on active stock-picking across global markets. Headquartered in the US but with a strong ASX listing, GQG’s client base spans big pension funds, sovereign wealth, and individual investors. Its strong global presence makes it a recognised player in global equities.

GQG’s recent fundamentals stand out:

• Larger market cap of $3.21 billion
• Staggering reported dividend yield of 19.39% (unfranked)
• P/E ratio of 4.78—a fair bit lower than Magellan’s
• Earnings per share of $0.159
• Year-to-date return of -30.1%

It’s hard to ignore that eye-popping yield and rock-bottom P/E for an asset manager of this size, but the dividend is entirely unfranked—a key point for local income hunters.

Valuation comparison

Here’s how some key metrics stack up:

Metric	Magellan Financial Group	GQG Partners
Market Cap	$2.47b	$3.21b
P/E Ratio	16.90	4.78
Dividend Yield	7.69% (100% franked)	19.39% (unfranked)
Earnings per Share	$0.500	$0.159
Year-to-date Return	-8.8%	-30.1%

Note: GQG Partners’ low P/E and high yield jump off the page, but the EPS figure used to compute the P/E ratio may differ from the trailing earnings number reported here. If it seems mathematically inconsistent, it’s likely due to different definitions of earnings in these calculations. Magellan’s 100% franked dividends stand in contrast to GQG’s unfranked payouts—potentially a big factor, depending on your tax situation or income needs.

Recent share price performance

Comparing share recent share price momentum from 25 August to 21 September 2026:

• Magellan shares have fallen -8.8% year to date with some sharp swings. From $10.78 on 25 August to $8.43 by 21 September, the shares lost significant ground, with a particularly steep fall on 27 August (-14.0%).
• GQG Partners shares suffered an even heavier YTD drop of -30.1%. Between 25 August ($1.49) and 21 September ($1.09), GQG lost about 27% of its value, also weathering large one-day drops, especially on 26 August (-6.7%).

It’s fair to say recent performance has been negative for both, but the speed of decline for GQG has been particularly severe.

Which is the better buy?

This is a tricky face-off. GQG Partners clearly screens as far “cheaper” on P/E and headline yield, but it’s missing franking credits and has been hammered much harder on price—in fact, I’d want to understand the sustainability of that 19.4% yield before counting on it. Magellan looks steadier, both in how its payout is franked and in less severe recent share price losses, though it’s hardly immune to volatility and has well-known business challenges on its plate.

If pushed to pick, I’d lean modestly towards Magellan Financial Group for its franking, more stable payout record, and less dramatic share price drawdown over the last quarter. That said, GQG’s value metrics are so extreme that, for brave investors who can stomach volatility and do their homework on the dividend, it remains tempting as a contrarian punt. Right now, my pick would be Magellan—pragmatically, for income consistency and overall relative stability. But it’s closer than it looks, and both have things to prove moving forward.

The post Magellan Financial Group vs GQG Partners: ASX fund manager showdown appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Washington H. Soul Pattinson and Company Ltd (ASX: SOL) (Soul Patts) share price is in focus after the investment house delivered a landmark year to 31 July 2026, with statutory NPAT soaring 502% to $2.19 billion and revenue jumping 96% as a result of the merger with Brickworks Limited.

What did Washington H. Soul Pattinson report?

• Revenue from continuing operations rose 96% to $1.87 billion (FY25: $955 million)
• Statutory net profit after tax (NPAT) attributable to shareholders up 502% to $2.19 billion (FY25: $364 million), including one-off merger gains
• Net Cash Flow From Investments (NCFI) increased 12% to $572 million
• Final dividend of 63 cents per share, fully franked (up 6.8% on FY25); total FY26 ordinary dividends 111c (up 7.8%)
• Net Asset Value (pre-tax) up 10.4% to $13.7 billion; post-tax NAV $14.5 billion (up 27.2% per share basis)
• Available liquidity of $3.8 billion in cash and facilities

What else do investors need to know?

FY26 was transformative for Soul Patts, driven by the completed merger with Brickworks in September 2025. The new group consolidated two of the country’s most recognised compounders and led to a significant reset of Soul Patts’ capital structure, tax base, and portfolio mix. With the cross-shareholding unwound, Brickworks’ results are now fully included from the merger date, with prior holdings equity-accounted.

Beyond record profit, Soul Patts demonstrated active portfolio management, selling down equities including its TPG Telecom stake, divesting the Goodman industrial property joint venture for $1.9 billion, and expanding allocations to global private markets and fixed income. The business remains Australia’s only dividend aristocrat, marking its 28th consecutive year of increased ordinary dividends.

What did Washington H. Soul Pattinson management say?

Todd Barlow, Managing Director & CEO said:

One year on, the Brickworks merger decision has delivered a cleaner capital structure, a stronger balance sheet and great firepower for new investments, without compromising the disciplined governance and capital allocation Soul Patts has always been known for.

What’s next for Washington H. Soul Pattinson?

Looking ahead, Soul Patts says its strong balance sheet and cash reserves give the group flexibility to pursue new investments as opportunities arise, especially during market volatility. Management expects to continue rotating capital into global private markets, with a focus on quality and disciplined deployment. The reactivated Dividend Reinvestment Plan allows shareholders to reinvest in new shares for the 2026 final dividend, with grants expected to grow now that the Soul Patts Foundation corpus has expanded post-merger.

Market conditions remain uncertain, but management is prioritising liquidity management, a continued defensive portfolio approach, and active capital deployment to sectors with long-term structural growth. Soul Patts’ history of resilience and dividend growth underpins its guidance of ongoing value creation for shareholders.

Washington H. Soul Pattinson share price snapshot

Over the past 12 months, Soul Patts has risen 16%, outpacing the S&P/ASX 200 Index (ASX: XJO), which is flat over the same period.

View Original Announcement

The post Washington H. Soul Pattinson posts 502% profit surge after Brickworks merger appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Something will jump out at you if you take a look at the WAM Capital Ltd (ASX: WAM) share price right now. It’s not the share price itself, although that is notable for reasons we’ll get to momentarily. No, what’s most striking about WAM Capital shares today is the absolutely stonking dividend yield this listed investment company (LIC) is apparently trading on.

Yesterday, WAM Capital shares closed at $1.18. That was down 0.42% for the session.

At that price, WAM Capital was allegedly trading on a trailing dividend yield of 13.19%.

Yep, no typos, no misplaced decimal points. 13.19%.

The prospect of a 13.2% yield is more than enough to grab any investor’s attention, regardless of whether they even invest primarily for income. After all, that implies that one would get back roughly $132 a year for every $1,000 invested. Incredible cash flow if accurate.

The market rarely offers up these sorts of opportunities, so is this a case of ‘too good to be true’?

Well, let’s work our way backwards to find out. WAM Capital has paid out two dividends over the past 12 months. The first was the October 2025 final dividend worth 7.75 cents per share. The second, the interim dividend from May, was also worth 7.75 cents per share. That 15.5 cents per share in dividends over the past 12 months gives WAM Capital that 13.2% yield at the current $1.18 share price.

Is the 13.2% dividend yield on WAM Capital shares for real?

Case closed, right? Well, not exactly. As any good dividend investor knows, a trailing yield only tells us what an investment has paid out over the past 12 months. It doesn’t tell us a lot about what it might fund over the coming 12 months.

As we’ve discussed many times this year, there were many warning signs that WAM Capital was digging itself into a bit of a hole when it came to future payout ability. Its profit reserve, from which dividends can be funded, has all but run dry. WAM Capital itself acknowledged this reality last month. That was when the company told investors that:

Since FY2020, the Board has maintained WAM Capital’s full year dividend at 15.5 cents per share. Over that period, the dividends paid by the Board exceeded the profits generated, drawing down the Company’s accumulated profits reserve. Maintaining the dividend at 15.5 cents per share is no longer sustainable with the profits reserve available.

As a result, WAM Capital has told investors to only expect a total of 8 cents per share (two dividends worth 4 cents each) over 2027. Those will come partially franked at 60%. That’s a cut worth 48.4%. Ouch.

If that is accurate (WAM Capital could downgrade it even further if necessary), WAM Capital shares would have a forward yield of 6.84% at current prices. Not 13.2%.

Of course, that is still a fairly sizeable yield. But bear in mind that it is largely a result of this LIC’s share price collapse in 2026. Since the start of the year, WAM Capital shares have lost more than 35.3% of their value, including 22.5% since this dividend cut was announced. It’s also worth noting that, as of 31 August, WAM Capital only had 5.7 cents in its profit reserve. This means that, as of today, it doesn’t even have the cash on hand to fund 8 cents per share worth of dividends.

Investors might wish to tread very cautiously indeed here.

The post Insane: Do WAM Capital shares really have a 13.2% yield? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen thankfully 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.