goeasy (TSX:GSY) has been one of the most rewarding stocks on the TSX over the past decade, creating significant wealth for long-term investors. Over the last 10 years, its shares have grown at a compound annual growth rate (CAGR) of about 31.5%, resulting in a solid capital gain of 1,451.4%. Notably, an investment of $10,000 in goeasy a decade ago would be worth about $154,617 today, more than 15 times the original amount.
The company, known for offering non-prime leasing and lending services, hasn’t just delivered market-beating returns. It has also rewarded shareholders through consistent and growing dividend payments, further boosting overall returns.
However, even after such a strong run, goeasy still shows plenty of growth potential. This means that buying its stock today could set you up for life. Let’s take a closer look.
goeasy to deliver solid growth
goeasy is in a solid growth phase, which will drive its share price higher. Moreover, its ability to grow its earnings at a double-digit rate will support higher dividend payments. In addition, goeasy stock is undervalued near the current levels. This combination of growth, income, and value makes goeasy an appealing option.
The subprime lender is likely to benefit from its ability to consistently expand its consumer loan portfolio. That portfolio reached $5.1 billion as of June 30, 2025, compared with $4.1 billion a year earlier, reflecting an increase of 23.2%. The company is witnessing higher loan originations across all its product lines. Moreover, this momentum translated into a 10.7% increase in second-quarter revenue.
Looking ahead, management expects the loan portfolio to reach $7.35 billion to $7.75 billion by 2027. While the average yield on loans is expected to decline, this is the result of a deliberate strategy to increase the proportion of secured loans. These loans typically carry lower interest rates but are less risky, strengthening the company’s long-term earnings stability.
goeasy will also benefit from a diversified funding base and ongoing expansion across products, distribution channels, and geographic regions. Combined with disciplined credit and underwriting practices and operational efficiency, these factors should support double-digit earnings growth in the coming years.
goeasy: A dividend growth story investors shouldn’t overlook
While goeasy has been delivering impressive capital gains, it is also a reliable source of dividend income. The Canadian subprime lender has paid dividends for 21 straight years. Moreover, it has raised its annual distribution for the past 11 consecutive years.
Looking ahead, there’s good reason to believe this streak will continue. goeasy’s earnings are expected to increase at a double-digit pace, giving it the financial strength to sustain and grow its dividend. As of August 18, the stock closed at $206.49, offering a dividend yield of 2.8%. While goeasy’s yield is not very high, the consistency of its increases and long-term growth potential make it a compelling pick.
goeasy stock is a hidden gem for value investors
Despite goeasy’s strong track record of solid financial performances, its stock is trading at a steep discount. It currently trades at a next 12-month price-to-earnings multiple of 10.1 times, which is low considering its growth prospects.
Notably, goeasy has consistently delivered robust double-digit earnings growth, proving its ability to expand profitably. On top of that, investors can enjoy a healthy dividend yield, adding reliable income to the mix. Further, with an expected return on equity (ROE) of over 23%, goeasy is a compelling bet.
The bottom line
goeasy is an attractive stock to create wealth in the long run. For instance, even if goeasy stock grows at a conservative CAGR of 15%, a $10,000 investment today could balloon into roughly $163,665 over 20 years.
