When stock markets dip, dividend stocks become especially attractive — not just for their regular payouts, but for the chance to scoop up quality companies at discounted prices. One standout in this category is goeasy (TSX:GSY). This Canadian lender might not be a household name like the big banks, but for investors seeking income and growth, it has been quietly outperforming for years. And now that the stock is trading down 28% from 52-week highs, this dividend knight could be worth a closer look.
goeasy stock
goeasy operates in the non-prime lending space. It provides personal loans, home equity loans, and lease-to-own furniture and appliances through its brands easyfinancial and easyhome. This market often gets overlooked, but it serves an important role for Canadians who might not qualify for traditional bank credit. As the cost of living rises, demand for alternative lending options has increased. goeasy has met that need by growing its customer base and expanding its loan book significantly.
Despite some market turbulence, goeasy continues to show strong financial results. In its first-quarter 2025 earnings report, it posted revenue of $391.9 million, up 19% year over year. Although it missed analyst estimates, the overall trend remains positive. Net income came in at $58.7 million, with earnings per share (EPS) of $3.53. That was below the expected $4.53, largely due to higher-than-anticipated credit losses. Still, the company’s loan portfolio grew to $4.79 billion, marking a 24% year-over-year increase. That kind of loan growth is impressive, especially during a period of high interest rates and economic uncertainty.
Solid income
Even better for income investors, goeasy’s dividend remains rock solid. The company declared a quarterly dividend of $1.46 per share, which equates to an annual payout of $5.84. At the current share price of approximately $148.50, the yield works out to about 3.96%. That’s not only higher than many traditional financial stocks but also comes with the bonus of dividend growth. goeasy has raised its dividend every year for a decade, with an average annual increase of more than 30% over the past five years.
It’s worth noting that goeasy’s payout ratio remains very conservative. Even with the recent earnings miss, the company still covers its dividend comfortably with its profits. That gives it room to continue increasing payouts even if the economy slows. For long-term investors, this kind of reliability is invaluable, especially inside a Tax-Free Savings Account (TFSA) where dividends and capital gains aren’t taxed.
Considerations
Of course, no investment is without risk. goeasy’s business depends on the ability of its customers to repay loans, which can become more difficult during downturns. The company has implemented credit risk controls and has historically managed its loan losses well, but higher default rates are always a possibility. That said, goeasy maintains a strong balance sheet with enough flexibility to weather short-term pressures.
What also makes the current setup interesting is valuation. At around $148 per share, goeasy is trading about 28% below its 52-week high of $206. That puts its price-to-earnings ratio at 9.76 at writing, well below the Canadian financial sector average. For a company that’s growing its loan book by double digits and consistently rewarding shareholders, that’s an attractive valuation.
Bottom line
For those seeking dividend income alongside strong growth potential, goeasy offers the best of both worlds. The recent dip in share price has opened a window for long-term investors to buy in at a reasonable valuation. And with that reliable dividend growing year after year, goeasy could be a strong addition to any TFSA or retirement account. In a shaky market, it’s a rare combination of income, value, and upside.
