I've got $2,000 and I'm on the hunt for cheap ASX shares to buy in December

These stocks could be too cheap to ignore.

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The stock market is a great place to hunt for cheap ASX shares with $2,000. Share prices are always changing, and brave investors can seize opportunities if they see a bargain.

I'm weighing up my next investment. Two businesses that appeal to me have both seen their share prices fall recently. They could be good value and offer an attractive dividend yield.

I love receiving dividends because they bring a pleasing cash flow into my bank account, which I can then spend or invest in new opportunities.

With that in mind, below are two cheap ASX shares that I'm close to investing in.

Centuria Industrial REIT (ASX: CIP)

This real estate investment trust (REIT) owns a portfolio of high-quality industrial properties, mainly across New South Wales, Victoria and Queensland.

Its portfolio includes manufacturing and production, distribution centres, transport logistics, data centres, and cold storage. I like the diversification the portfolio offers.

The business has an impressive occupancy rate of 97% and a high weighted average lease expiry (WALE) of 7.6 years, which means the tenants are signed on for a long time to pay good rent.

When new leases are signed, rental income increases significantly. According to the REIT, it saw positive re-leasing spreads of 54% during the first quarter of FY25. That is a very large increase.

The business is benefiting from several tailwinds, including a rising population, higher adoption level of e-commerce, growing demand for data centres, and a shortage of space in our capital cities.

The cheap ASX share is currently trading at a discount of more than 20% to its net tangible assets (NTA) as at 30 June 2024. The CIP REIT expects a small increase in rental profit in FY25, despite high interest rate costs, and is guiding to pay a distribution that equates to a yield of 5.5%, which I think is appealing.

GQG Partners Inc (ASX: GQG)

GQG is one of the largest fund managers on the ASX, though its share price is a bit smaller today than it was a month ago, having fallen by more than 20%. The sell-off was caused by investor fears relating to GQG's investment in some Adani businesses, which are now being scrutinised in the United States for alleged bribes.

The cheap ASX share is not overly concerned by Adani, suggesting those businesses can continue operating, even if some individuals face fines or sanctions.

GQG's main strategies have a history of outperforming the markets over the long term, so I'm not worried that its long-term fund performance will be forever tainted. The main question for now is how much of its funds under management (FUM) will flow out of the door.

If the fund's investment performance remains solid, excluding Adani impacts, I don't think it will be too much. Prior to the Adani news, GQG was experiencing strong net inflows, so this could be a contrarian buying opportunity, just like the one GQG likes to make.

It's also able to support its share price through the announced share buyback. On a three-year or five-year view, I think this will be an opportunity to buy this compelling business.

According to Commsec, the GQG share price is valued at under 9x FY25's estimated earnings with a possible dividend yield of 10.3%.

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 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.

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