While the broader indices are hovering near all-time highs, several TSX dividend stocks are trading below record levels in October 2025. Investing in beaten-down dividend stocks that are fundamentally strong provides Canadians with an opportunity to benefit from an elevated dividend yield and long-term capital gains.
In this article, I have identified one top Canadian dividend stock that is down 23% from all-time highs and offers a dividend yield of 3.6%. Valued at a market cap of $2.6 billion, goeasy (TSX:GSY) is expected to pay shareholders an annual dividend per share of $5.56, up from $0.48 in 2016.
In the last 20 years, the TSX stock has returned 840% to shareholders. After adjusting for dividends, cumulative returns are closer to 1,530%. It means a $1,000 investment in goeasy stock back in October 2005 would be worth $16,340 today.
Let’s see if this top TSX dividend stock is still a good buy right now.
Is goeasy a good stock to own?
goeasy is a small-cap company that provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. It offers unsecured and secured installment loans, home equity and home improvement, secured installment loans, and automotive vehicle financing, and loans to finance the purchase of retail goods, powersports, and recreational vehicles.
Canada’s leading non-prime lender reached a key milestone in the second quarter, surpassing $5 billion in loan receivables after adding $313 million in the June quarter. goeasy originated $904 million in loans, which exceeded expectations and demonstrated strong demand across all product categories despite ongoing economic uncertainty. The company expects its loan book to end 2025 at the top end of its guidance range of between $5.4 billion and $5.7 billion.
In the second quarter (Q2) of 2025, goeasy reported revenue of $408 million, a 11% increase year over year, driven by improved product mix and pricing optimization. Total yield increased 50 basis points sequentially to 31.8%, driven by stronger ancillary sales and improved collections. The efficiency ratio improved to 25.6%, a 130-basis-point decrease from last year, as the company leverages its scale advantages.
Credit performance continues to improve, as net charge-offs declined to 8.8%, a 50-basis-point year-over-year decrease and a 10-basis-point quarter-over-quarter decrease. Late-stage delinquencies above 90 days decreased from 3.3% to 2.8% as goeasy optimized its collection processes.
The secured portion of the portfolio now represents 48%, up from 44.5% a year ago, reflecting strong growth in auto and home equity loans.
CFO Hal Khouri noted that the company raised US$400 million in senior notes during the quarter at a favourable interest rate of 6.03% after hedging. With $1.74 billion in total funding capacity and $377 million in trailing free cash flow, goeasy maintains ample liquidity to support organic growth without relying heavily on external debt.
The company has served over 1.6 million Canadians and originated $17.5 billion in loans since its inception, delivering an average return on equity of 25.4% over the past five years. Management reinforced confidence in maintaining disciplined underwriting while capturing market share, as larger banks tightened lending standards and smaller competitors exited the market.
Is this TSX dividend stock undervalued?
Analysts tracking goeasy stock forecast revenue to increase from $1.52 billion in 2024 to $2.16 billion in 2027. In this period, adjusted earnings are forecast to expand from $16.71 per share to $26.37 per share.
Over the last 10 years, GSY stock has traded at an average price-to-earnings multiple of 9.8 times, which is higher than the current multiple of eight times. If GSY stock trades at nine times earnings, it should trade around $237 in early 2027, indicating an upside potential of 46% from current levels.
Moreover, Bay Street expects its annual dividend per share to $7.21 in 2027, enhancing the effective yield to 4.5%.
