If you are wanting to boost your passive income, then it could be worth considering the ASX 200 stock featured in this article.
That's the view of analysts at Morgans, who believe that this stock could provide investors with one of the biggest dividend yields around.
Which ASX 200 stock?
The stock that Morgans is bullish on is GQG Partners Inc (ASX: GQG).
It is a global investment boutique headquartered in the United States and focused on managing active equity portfolios for investors that include many large pension funds, sovereign funds, wealth management firms, and other financial institutions around the world.
This week, the ASX 200 stock released its latest funds under management (FUM) update and reported a 4.3% increase in FUM to US$172.9 billion during the month of February.
However, this was entirely driven by investment performance, with the company continuing to experience fund outflows.
The company revealed net outflows of US$3.2 billion for the month. These were recorded across all strategies, with emerging markets leading the way. GQG reported net outflows of US$1.3 billion for emerging markets, followed by US$0.9 billion of net outflows from international strategies.
Time to buy
While the net outflows were not pretty, Morgans thinks investors should be focusing on its strong investment performance. That's because it is likely to be supportive of future FUM inflows.
In light of this and recent share price weakness, the broker has upgraded the ASX 200 stock to a buy rating (from accumulate) with an improved price target of $2.03 (from $1.89).
Based on its current share price of $1.81, this implies potential upside of 12% for investors over the next 12 months.
But the returns won't stop there, according to the broker. Morgans expects a stunning dividend yield of 11% in 2026 and then the same again in 2027. It commented:
GQG has provided a February FUM update. Whilst monthly net flows remained negative (-US$3.2bn), strong February investment performance (+US$10.5bn), which drove +4.5% FUM growth, made this a positive update in our view. We lift our GQG FY26F/FY27F EPS by +1%-+2%, driven by increased FUM forecasts based on better investment performance than we expected. Our PT rises to A$2.03 (previously A$1.89).
We acknowledge it remains early, but the improved January and February investment performance for GQG might mark the start of a business turnaround. We continue to see the stock as undervalued trading on 8x FY1 PE and an ~11% dividend yield. With >20% TSR upside, we move to a BUY rating, previously Accumulate.
The post Buy this ASX 200 stock for an 11% dividend yield in 2026 and 2027: Morgans appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Gqg Partners. 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.
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