Few dividend stocks have offered as much growth as goeasy (TSX:GSY) on the TSX. GSY has historically been a rewarding venture for investors, particularly for those who bought into the stock in its earlier stages. If you had invested $1,000 in GSY back in 2010, you’d be sitting on a significantly larger pile of cash today.
Goeasy has made a name for itself in the Canadian market by providing non-prime leasing and lending services. This, despite economic fluctuations, has allowed the company to flourish. The dividend stock has consistently shown growth through its earnings, dividends, and an expanding customer base.
How fruitful is GSY?
To give you an idea of how fruitful this investment would have been, let’s start with the numbers. Back in 2010, GSY stock was trading at around $7.50 per share. Fast forward to today, and as of October 2024, the stock is valued at $190.56. That means your $1,000 investment would have bought you about 133 shares back then. At today’s price, those shares would be worth an impressive $25,334! This staggering growth shows how goeasy stock’s consistent profitability and expansion into new markets have significantly benefited long-term investors.
When it comes to dividends, goeasy stock has been a strong performer as well. The company has steadily increased its dividend payouts over the years. As of now, GSY’s forward annual dividend rate is $4.68 per share, which translates to a yield of 2.5%. Back in 2010, the company’s dividends were much smaller. Yet the compounding effect over time would have rewarded early investors with solid returns. With a payout ratio of 27.7%, the company strikes a balance between rewarding shareholders and reinvesting in its growth.
Still strong
Looking at the most recent earnings report from June 2024, goeasy stock posted quarterly revenue of $794.3 million, up 15.4% year over year. This steady growth showcases the company’s ability to expand even in challenging economic conditions. Plus, goeasy’s profit margin of 33.4% and operating margin of 43.1% underscore its strong operational efficiency. For shareholders, this kind of profitability is a clear indicator of the company’s resilience and ability to generate cash flow.
Recent headlines have also been positive for goeasy. The company has received praise for its robust earnings and revenue growth, as well as its disciplined approach to managing debt and expanding its customer base. This has helped boost investor confidence and further solidify GSY as a standout performer in the financial services sector. Notably, goeasy stock has gained 75.9% over the past 52 weeks at writing.
Future success
Management also plays a crucial role in goeasy stock’s success. CEO Jason Mullins has led the company through periods of growth while carefully navigating challenges posed by economic fluctuations. Under his leadership, goeasy stock has not only expanded its product offerings but also improved customer service, thus making it a go-to option for many Canadians seeking alternative lending solutions. The company’s strong return on equity (ROE) of 25.3% demonstrates effective use of shareholder capital, a hallmark of solid management.
Looking to the future, goeasy stock appears well-positioned for continued growth. With its strong balance sheet, including $225.9 million in cash and a strategic focus on customer acquisition, the company is expected to maintain its trajectory. Additionally, its recent moves to expand into adjacent financial services show that goeasy stock is not resting on its laurels. Analysts predict further growth in earnings and dividends, making it a compelling option for both growth and income investors.
Bottom line
Goeasy stock has been a fruitful investment over the years, particularly for those who got in early. If you’d invested $1,000 in 2010, you’d be looking at a significant gain today, both in terms of stock appreciation and dividends. With a strong management team, solid financials, and a proven track record of growth, goeasy stock continues to be a top pick on the TSX for long-term investors.
