The Canadian equity market has delivered a strong performance over the past year, with the S&P/TSX Composite Index rising roughly 30%. Interest rate cuts and resilient consumer spending have fueled optimism, lifting many Canadian stocks to new highs. However, not all TSX stocks participated in this rally. One notable laggard is goeasy (TSX:GSY). This high-quality Canadian dividend stock has moved sharply in the opposite direction.
In 2025, goeasy shares have declined more than 16%, and the stock now trades about 37% below its 52-week high of $216.50. The sell-off was triggered largely by a short-seller report that raised concerns about the company’s accounting practices and risk profile. That pressure was amplified by higher credit-loss provisions and financing costs in the third quarter (Q3) of 2025. Moreover, goeasy’s strategic pivot toward secured lending is weighing on its overall yields. Together, these factors weighed on near-term earnings and dampened investor confidence, even as the broader market continued to climb.
While these headwinds have affected short-term results, goeasy’s fundamentals remain solid, and it continues to generate ample cash to support its dividend payments. Thus, the recent decline in goeasy stock is an opportunity for long-term investors to buy and hold this top Canadian dividend stock at a discount.
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goeasy’s dividend payment history
goeasy has a solid track record of dividend payments and growth. The company has been returning cash to shareholders for more than two decades, demonstrating its ability to maintain dividends across varying economic conditions and its commitment to enhancing shareholder value.
That consistency has been paired with impressive growth. In February 2020, goeasy earned a place in the S&P/TSX Canadian Dividend Aristocrats Index after delivering a remarkable 42% compound annual growth rate (CAGR) in its dividend over the previous five years.
In February 2025, goeasy announced a substantial 24.8% increase in its quarterly dividend, raising it from $1.17 to $1.46 per share. This increase marked the 11th consecutive year in which shareholders received a higher dividend, highlighting management’s confidence in the company’s earnings power and cash flow generation.
The pace of growth has been particularly notable in recent years. Since 2021, goeasy’s annual dividend has climbed by 121%, rising from $2.64 to $5.84 per share in 2025. At the current market price, goeasy stock offers a dividend yield of approximately 4.3%.
goeasy’s dividend outlook remains compelling
Despite near-term headwinds, goeasy remains well-positioned to sustain and grow its dividend over time. The financial services company’s tighter underwriting practices and focus on secured lending could modestly pressure earnings in the short term, but the move meaningfully reduces long-term credit risk and lays the groundwork for more stable and predictable earnings. It enhances the durability of future dividend payments.
Looking ahead, goeasy could benefit from several factors. Loan demand remains strong, particularly in the large, underserved subprime lending market the company specializes in. Its diversified funding sources and efficient omnichannel operating model further strengthen its competitive position. Management expects gross consumer loan receivables to grow to between $7.35 billion and $7.75 billion by 2027, alongside an expansion in operating margins. These trends should translate into healthier cash flows, providing ample support for continued dividend payments and increases. Ongoing initiatives to improve operating efficiency and maintain disciplined credit performance further strengthen the company’s earnings growth trajectory.
Further, goeasy stock currently trades at a forward price-to-earnings (P/E) multiple of roughly 6.8, which represents a notable discount relative to its earnings growth potential. Given the company’s history of double-digit earnings growth, consistent dividend increases, and an appealing yield, the current valuation suggests the stock is undervalued. For investors, goeasy offers income, value, and growth, which makes it a compelling long-term investment.
