Finding a Canadian stock you can buy, hold, and feel good about for years is never easy, especially when the market is full of noise. But every once in a while, a company shows up with steady growth, rising dividends, and a solid business model that makes it feel like a keeper. For Canadian investors looking for just that, goeasy (TSX: GSY) might be the hidden gem worth scooping up. It’s one magnificent stock that has quietly built a reputation for strong returns, and right now, it’s on sale.
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The stock
goeasy is a non-prime lender that helps Canadians access personal loans, retail financing, and lease-to-own products. While it doesn’t operate in the same world as the big banks, that’s actually the point. It serves borrowers who may not qualify for traditional loans, filling a crucial gap in the financial system. Its main divisions, easyfinancial and LendCare, offer everything from $500 emergency loans to financing for car repairs and furniture. And Canadians are lining up. Loan demand remains strong even with higher rates, and goeasy continues to see record originations.
Despite this strength, goeasy’s stock has taken a hit. As of writing, it trades around $146, down 29% from its 52-week high of $206.02. So, what gives? Like many lenders, goeasy has faced rising loan-loss provisions as consumers feel the pinch of higher borrowing costs. That’s led to a short-term dip in earnings. In the Canadian stock’s latest results for the first quarter (Q1) of 2025, revenue came in at $391.9 million, a year-over-year increase of 10.7%. However, adjusted earnings per share (EPS) were $3.53, down from $3.83 the year before, and were short of analyst expectations.
Future focus
Even so, the long-term picture remains bright. Loan originations in Q4 2024 reached a record $814 million, pushing the total loan book to $4.6 billion, up 26% year over year. That kind of growth doesn’t happen by accident. The Canadian stock continued to build its customer base while improving efficiency. It’s also been expanding its reach, including a stronger push into point-of-sale financing through LendCare, which partners with businesses across Canada to offer payment plans to customers.
Dividends are another reason goeasy stands out. It has raised its dividend every year for nearly a decade, and in 2024, the Canadian stock hiked it by 25%, bringing the annual payout to $5.84 per share. That gives it a yield of roughly 3.7% at current prices. Not bad for a growth company. And this isn’t a stretch-the-budget kind of dividend. goeasy’s payout ratio remains conservative, with management signalling confidence in both earnings and cash flow.
Making moves
goeasy has also made headlines recently for a big leadership change. Dan Rees, a veteran from Scotiabank, is stepping in as CEO this month. He brings with him years of experience in Canadian banking, including retail and commercial segments, which should help guide goeasy through its next growth phase. Investors often get nervous around leadership changes, but this one feels like a win. Rees knows how to scale a financial business responsibly, and his arrival signals that goeasy is preparing for an even bigger future.
Management has laid out an ambitious long-term plan. By 2027, goeasy expects its loan portfolio to grow to between $7.35 billion and $7.75 billion. That’s more than 60% growth from current levels. It also plans to keep the total yield around 30%, thanks to product diversification and smart underwriting. Even if interest rates stay higher for longer, goeasy believes it can deliver consistent, profitable growth.
Bottom line
So, is this stock worth buying and holding forever? If you’re looking for a mix of growth, income, and staying power, it just might be. The Canadian stock is recession-resistant, thanks to strong demand from a specific customer base. The dividend keeps growing. And the company has room to scale both organically and through new partnerships. While the Canadian stock is down now, the fundamentals haven’t changed. If anything, this dip offers an ideal entry point.
