As the Canadian stock market is continuing to reach new heights in 2025, it is becoming increasingly difficult for Foolish investors to spot the next big winner. In general, the best opportunities come from businesses that quietly build on their strengths while meeting real customer needs. One Canadian financial stock is currently doing just that. It’s been expanding its lending operations, reaching more customers, and posting results that speak to its staying power.
In this article, I’ll share four key reasons why goeasy (TSX:GSY) could be one of the most compelling buys in the market right now.
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Record-breaking loan growth
Interestingly, goeasy has been on a remarkable growth path of late. In the second quarter of 2025, the company originated a record $904 million in loans, reflecting a 9% rise from a year ago. That pushed its loan portfolio to $5.1 billion, an impressive 23% increase YoY (year over year). As the demand for credit surged, its loan applications climbed 23% compared to the same period in 2024.
What makes this noteworthy is that the growth came across multiple channels — unsecured loans, automotive financing, home equity lending, and point-of-sale financing. This level of diversification in loan origination not only fuels revenue growth but also spreads risk across product lines.
Consistently strong earnings power
When a company can post higher earnings even in a changing interest rate and regulatory environment, it signals a resilient business model. In the latest quarter, goeasy’s net profit surged by 32% YoY to $86.5 million.
This tells investors that the company’s core profitability remains intact, despite certain headwinds like lower annualized yield on loans due to a growing share of secured lending products and a government interest rate cap.
With GSY stock currently trading at $200.63 per share, a market cap of $3.2 billion, and an annualized dividend yield of about 2.91%, goeasy offers investors both capital growth potential and income. That perfect balance could be especially attractive for long-term investors.
Improving credit quality
One of the biggest risks for lenders is credit losses, but goeasy has been improving here, too. In the second quarter, its annualized net charge-off rate was 8.8%, down from 9.3% last year. This improvement came from enhancements in underwriting and a healthier mix of loans, with 48% of the portfolio now secured compared to 44% a year earlier.
This matters because better credit performance not only supports profitability but also provides more flexibility to grow the loan book without taking on excessive risk.
Solid dividend-growth track record
While goeasy continues to grow, it also makes rewarding shareholders a top priority. The company has paid dividends for 21 consecutive years and has increased its payout for 11 years in a row. Its most recent quarterly dividend was set at $1.46 per share, payable in October 2025.
That history of returning cash to shareholders while also delivering significant capital appreciation clearly shows that its management values long-term investor returns. Over the last decade, the stock has soared over 1,000%, making it one of the strongest performers on the TSX over that time.
When you combine this track record with the company’s current growth momentum, it’s easy to see why some investors may view it as a top Canadian stock to buy for the long term.
