The Tax-Free Savings Account (TFSA) is a powerful tool, but it’s often underused. While many Canadians use it like a regular savings account, it has the potential to do so much more. When used wisely, it can become a tax-free growth machine. And if I had $7,000 to put to work today, I’d be buying shares in goeasy (TSX:GSY).
goeasy
This company has flown under the radar for years, but it’s a true Canadian growth story. Based in Mississauga, goeasy provides lending and leasing services to consumers who often fall outside the traditional credit system. Its easyfinancial division offers personal loans, and its easyhome business leases furniture, appliances, and electronics. It serves a market that’s often ignored by the big banks.
goeasy grew from a small leasing company into a $2.1 billion business with a growing loan book, strong revenue, and consistent profits. Its strategy of targeting non-prime borrowers with responsible lending practices has worked well. This group of customers is underserved, and goeasy fills that gap by offering loans with flexible terms.
Bringing in the money
In the first quarter of 2025, goeasy brought in revenue of $391.86 million. That was up from $321.7 million the year before. It posted net income of $60 million, or $3.53 per share. While that came in slightly below estimates, it still represents strong year-over-year growth. The company’s return on equity stood at 22.9%, showing it uses investor capital very efficiently. And with a net profit margin of 32.5%, it keeps a good chunk of what it earns.
What’s even more impressive is goeasy’s ability to grow earnings and still return cash to shareholders. It currently pays a dividend that yields 3.91%, and that dividend rose steadily for over a decade. In fact, the company has grown its dividend by a compound annual rate of more than 30% over the past 10 years. That kind of income growth is rare. And with a payout ratio of around 30%, there’s still plenty of room for future increases.
A perfect pair
All of this makes goeasy a compelling choice for a TFSA. The TFSA shelters all income and capital gains from taxes, which means you keep every dollar your investment earns. With goeasy, that includes a growing dividend and potential capital appreciation. If the company continues to grow earnings and expand its customer base, the share price should follow. That’s the kind of compounding that can turn $7,000 into something much bigger over time.
And let’s not forget about valuation. Despite its track record, goeasy trades at a very reasonable multiple. Its forward price-to-earnings ratio is just 9.3. That’s low for a company growing revenue by double digits and paying a rising dividend. For context, many Canadian financials trade at much higher valuations and don’t offer the same growth. That makes goeasy not just a growth stock but a value play, too.
Bottom line
What I like most about goeasy is that it doesn’t just chase growth. It does so responsibly. It reports its net charge-off rates, keeps provisions for credit losses in check, and is transparent about its loan quality. That builds trust. And for long-term investors, trust is just as important as returns.
So, if I were looking to make my TFSA work harder, goeasy would be my first pick. I’d buy $7,000 worth of shares, reinvest the dividends, and hold on for the long term. I’d watch earnings reports, track dividend increases, and look for steady loan growth. Over the years, I’d expect that investment to generate tax-free income and grow in value.
