The TSX has several high-quality dividend stocks known for their resilient payouts and attractive yields. However, here I’ll focus on goeasy (TSX:GSY), a Canadian financial services company that is often overlooked as one of the top dividend-paying TSX stocks.
While goeasy is recognized for its growth trajectory and ability to generate significant capital gains, its commitment to shareholders through consistent dividend payments is equally impressive. The company has maintained a robust dividend growth rate over the past decade, making it a dividend star in the Canadian market.
With the 2025 Tax-Free Savings Account (TFSA) contribution limit set at $7,000, goeasy is a solid pick to allocate this capital for long-term income growth. Let’s dig deeper.
Why is goeasy a solid income stock?
The subprime lender has paid dividends for 21 consecutive years and raised it for 11 years in a row. Moreover, its dividend growth rate has been solid and among the best on the TSX.
The financial services company’s solid distributions earned it a spot in the S&P/TSX Canadian Dividend Aristocrats Index in February 2020. At the time, goeasy had delivered a staggering 42% compound annual growth rate (CAGR) in dividends over the previous five years.
Fast-forward to 2025, the upward momentum in goeasy’s dividend has sustained. It hiked its quarterly dividend by nearly 24.8%, increasing it from $1.17 to $1.46 per share. Notably, from an annual dividend of $1.80 in 2020, goeasy will pay $5.84 in 2025, a leap of over 224%.
This surge has been well-supported by the management’s commitment to reward its shareholders with higher payouts and goeasy’s underlying financial strength. goeasy’s earnings per share (EPS) grew at a CAGR of 25.8% over the last five years (as of March 31, 2025), driven by strong revenue growth and efficiency improvement leverage.
Looking ahead, goeasy appears well-positioned to continue increasing its dividend. Moreover, it offers an attractive forward yield of 4% based on its closing price of $146.03 on May 22.
With a solid dividend payment history, accelerating dividend growth, and a strong earnings base, goeasy is a top income stock to consider now.
goeasy to keep growing its dividend
goeasy’s strong foothold in a large and underserved segment of the lending market positions it well to deliver solid growth. Its ability to manage risk while maintaining high-quality assets will lead to consistent earnings growth, supporting its payouts.
The financial services company’s risk-based pricing models will improve asset quality and boost margins. Moreover, operational efficiencies and stable credit performance will help generate high-quality earnings. As revenues climb and goeasy continues to manage costs well, the company will likely see continued improvement in its bottom line, further supporting its commitment to growing dividend payouts.
Bottom line
In summary, goeasy’s omnichannel offerings, expanding consumer loan portfolio, diversified funding sources, competitive loan yields, and solid underwriting capabilities will support double-digit earnings growth. GSY’s strong earnings will enable it to consistently increase its dividend payments.
Besides regular income, goeasy is poised to deliver above-average capital gains in the long term.
