1 Dividend Stock I’m Buying for Superior Passive Income in 2024

Goeasy stock (TSX:GSY) has seen solid growth of 21% in the last year, making it a top dividend stock for passive income in 2024!

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When it comes to passive income, there is a key here that many investors seem to forget, and that’s returns. While dividend income provides you with income on an annual, quarterly, or even monthly basis, returns can do the same thing! Even on a daily basis if you need the cash.

So today we’re going to look at a dividend stock offering both. Not just in the past, but looking forward to a solid future as well.

Don’t go easy on goeasy

Goeasy (TSX:GSY) has been one of the dividend stocks to beat these days. Shares of goeasy stock jumped about 6% this week as the company reported earnings that beat estimates. Again.

It was another record quarter for the company, reporting a revenue increase of $338 million, which was a 24% increase over the same time last year. The fourth quarter also saw loan originations climb 12% to $705 million, with a record volume of applications for credit.

This growth in turn led to more revenue, as well as growth in the company’s loan portfolio. The portfolio is now worth $3.7 billion, a 30% increase from $2.8 billion the year before. Further, it hit record operating income of $137 million and $74.6 million in net income. This was 161% higher than the same time last year.

Full year continues

Goeasy was also able to put out earnings for the full year. The company achieved record revenue of $1.3 billion, up 23% compared to 2022 levels. Operating income hit $477 million, up 43%, with net income at $248 million or diluted earnings per share of $14.28.

And now, the company is looking ahead to another strong year. Goeasy provided not just one year, but a three-year forecast for guidance from 2024 through to 2026. Both 2024 and 2025 were also updated to reflect even more growth for goeasy stock.

Management is now predicting strong results. Total company revenue should reach between $1.45 and $1.55 billion for 2024, $1.55 to $1.75 billion for 2025, and $1.7 to $1.9 billion for 2026. The operating margin should then reach 39%, 40%, and 41% from 2024 to 2026, respectively. Further, its return on equity should reach over 21% per year for the next three years.

And now, the dividend

Usually these growth stocks aren’t able to provide a dividend, never mind a strong one. Yet, that’s where we are with goeasy stock. GSY stock continues to provide a solid dividend thanks to its stable growth. And even with the company predicting a mild recession for Canada, management believes it will still manage to keep that dividend stable.

Not just stable, but growing! During earnings goeasy announced an increase in its dividend to $4.68 per share for the year. This was a whopping 22% increase! This was the 10th time the company had increased the dividend in the last decade.

All in all, there is a lot going for goeasy. Especially if you’re looking for a dividend stock offering lots of passive income. In fact, let’s say we see similar growth of 21% for the next year. Here is what a $5,000 investment could turn into for goeasy stock.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYPORTFOLIO TOTAL
GSY – now$16630$4.68$140.40quarterly$5,000
GSY – future$20130$4.68$140.40quarterly$6,030

You now have passive income of $1,030 in returns and $140.40 in dividends. That’s total passive income of $1,170.40 from this solid dividend stock!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in goeasy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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