1 Excellent TSX Dividend Stock, Down 43%, to Buy and Hold for the Long Term

With shares down sharply but the business still growing, this top TSX dividend stock is catching the eye of buy-and-hold investors.

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Key Points

  • goeasy (TSX:GSY) is a top TSX dividend stock down 43% from its 52-week high, offering 4.7% yield amid market fears.
  • Its third-quarter revenue jumped 15% YoY with 24% loan portfolio growth, despite an earnings dip due to higher provisions.
  • Strong cash flows, a 21-year dividend streak, and solid funding capacity make it a great buy-and-hold stock for long-term income seekers.

One of the most difficult tasks in the stock market is staying calm when a great business suddenly falls out of favour. Sharp price drops often feel like warning signs, even when the underlying company with strong fundamentals continues to grow and pay reliable dividends. That reaction is natural because every investor wants to protect their capital first.

But history shows that some of the best long-term returns come from buying strong businesses when sentiment is weak rather than when everything seems calm. This is especially true for dividend-paying stocks, where income keeps flowing even while share prices recover.

Recently, goeasy (TSX:GSY) has tested investors’ patience as its stock has dropped sharply, yet the company continues to grow its loan portfolio, expand its customer base, and extend a long dividend growth streak. In this article, I’ll walk through why goeasy stands out as a top TSX dividend stock to buy today for investors willing to think beyond the short term.

Why is goeasy stock under pressure?

To understand the opportunity, it might help to look at the business behind the share price. As a top Canadian consumer lender, goeasy operates through easyfinancial, easyhome, and LendCare, providing personal loans, auto financing, and point-of-sale lending solutions to non-prime borrowers.

GSY stock currently trades around $123.91 per share, giving it a market cap of roughly $2 billion. It also pays a quarterly dividend, offering an annualized yield of about 4.7% at the current market price. However, the stock is currently down about 43% from its 52-week high. Much of this pullback is driven by investors’ concerns about tough credit conditions, margin pressure, and volatility in goeasy’s earnings rather than a collapse in demand for its products.

A closer look at goeasy’s financial trends

In the third quarter of 2025, goeasy’s revenue jumped 15% YoY (year-over-year) to a record of $440 million with the help of strong loan originations and portfolio growth. During the quarter, the company’s loan originations reached $946 million, while its consumer loan portfolio expanded by 24% YoY to $5.4 billion. This solid growth was mainly supported by a 22% increase in credit applications across its lending channels.

However, goeasy’s earnings did face pressure. The Canadian lender’s adjusted diluted earnings fell 5% YoY in the latest quarter to $4.12 per share, reflecting higher provisions and a tougher economic environment. Similarly, its operating margins narrowed as it increased allowances for credit losses.

Still, goeasy’s credit quality remained stable, with its net charge-off rate improving to 8.9%, helped by a higher mix of secured lending and tighter underwriting.

Why this drop could be an opportunity for long-term dividend investors

Interestingly, goeasy has delivered 21 consecutive years of dividend payments and 11 straight years of dividend increases. In addition, the company continues to generate solid cash flows and ended the September 2025 quarter with more than $2.3 billion in available funding capacity. As a result, the lender estimates that a meaningful portion of its future loan growth could be funded internally, which gives it flexibility during uncertain economic periods.

While goeasy’s short-term earnings may remain uneven due to the shaky economic environment, the combination of portfolio growth, disciplined credit management, and a reliable dividend supports the idea that its recent share price decline is more due to fear than fundamentals. That’s why goeasy continues to look like a top TSX dividend stock to buy and hold for the long term, especially for investors focused on income and patience.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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