A Forever Dividend Pick: 39% Upside in This Canadian Stock

This dividend stock isn’t just a deal, it’s a steal with shares currently down. But don’t count the stock out.

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When the markets feel unpredictable, and inflation eats into your savings, a steady, high-quality dividend stock can bring some much-needed peace of mind. However, not all dividend stocks are built the same. Some are slow and steady. Others bring income but no growth. Then, there are rare finds like goeasy (TSX: GSY). It’s the kind of dividend stock you can stash away, collect rising dividends, and watch grow over time — the kind of stock you might just want to hold forever.

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About goeasy

goeasy is a Canadian alternative financial services company that’s quietly been crushing it for years. It offers loans, payment protection plans, and other credit products to consumers who might not qualify at the big banks. And it’s not just surviving in that space; it’s thriving. As of writing, goeasy trades at around $160 per share and boasts a market cap north of $2.6 billion. Yet analysts see much more room to run.

Let’s start with the numbers. In its fourth-quarter earnings for 2024, goeasy delivered adjusted diluted earnings per share (EPS) of $4.45. That was up 11% year over year and capped off a record-breaking full year. Revenue grew 18% in the fourth quarter, and the dividend stock’s loan portfolio hit $3.6 billion. That’s a lot of Canadians borrowing through goeasy, and the company continues to grow responsibly. Credit performance stayed within historical norms, even with higher interest rates and a more cautious consumer. That’s not easy to do in today’s market.

One of the reasons long-term investors love goeasy is its dividend. Right now, the annual dividend sits at $5.84 per share, giving it a yield of about 3.71%. But more impressive than the yield is the growth. Over the last decade, goeasy has increased its dividend by a compound annual growth rate of more than 30%. It raised its dividend again in 2025, up from $4.68 in 2024. That kind of growth is rare and shows real commitment to rewarding shareholders.

Looking ahead

What about the upside? Well, analysts are on board. The consensus 12-month price target is $223, which implies upside of roughly 39% from today’s price. That’s not based on hope or speculation; it’s grounded in steady earnings, responsible loan growth, and strong management. The dividend stock’s return on equity is a healthy 23.6%, and its net profit margin is an impressive 34.8%. These aren’t numbers you typically find in the financial sector unless you’re looking at a very well-run business.

Of course, every investment has risks. goeasy operates in the non-prime lending space, so it’s more exposed if the economy takes a sharp turn. If unemployment spikes or delinquencies climb, earnings could get squeezed. However, the dividend stock has a strong underwriting track record and keeps a close eye on risk management. Even in past downturns, it’s shown resilience.

Another thing worth noting is how accessible goeasy makes financial products for people who might otherwise be left out. Whether you see that as social good or market opportunity, it’s clear that goeasy has carved out a niche. And with its easyhome and easyfinancial brands growing steadily, that niche is expanding.

Bottom line

For investors thinking long term, especially those looking for income without giving up on growth, goeasy is hard to beat. It offers monthly cash flow through dividends and long-term upside as the business expands. The dividend is well covered by earnings, and the payout ratio leaves room for continued increases. In a time when many stocks feel risky, and volatility is the norm, goeasy brings a mix of reliability and reward. That’s a rare combination, and it’s why it might just be the ultimate forever dividend pick on the TSX today.

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

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