Rates have stopped feeling temporary. The Bank of Canada held its policy rate at 2.25% on Jan. 28, 2026, and it pointed to uncertainty tied to U.S. trade policy. That decision followed another hold late in 2025, so Canadians now live with a real “higher for longer” backdrop. Some dividend stocks can thrive in that setup because they earn more on fresh lending, maintain pricing power, and avoid the long-duration math that hurts richly valued growth names when yields refuse to fall.
If you want a dividend stock ahead of the next rate call, start with durability, not the headline yield. Higher rates raise funding costs and expose weak balance sheets. You want a business that can reprice revenue faster than expenses, manage credit tightly, and still generate enough cash to pay shareholders. The dividend should sit on top of a real growth engine, not a hope that rate cuts will arrive on schedule.
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GSY
goeasy (TSX: GSY) fits this moment as it operates where traditional banks often say “no thanks.” It provides consumer credit through easyfinancial and it serves non-prime borrowers who still need predictable access to funds. When rates stay high, that demand does not disappear. It can even grow, as households still face car repairs, rent gaps, and life surprises that refuse to wait for cheaper money.
Over the last year, goeasy gave investors both the growth story and the reality check. In its third quarter of 2025, it grew revenue 15% year over year to $440 million, and it lifted its loan portfolio to $5.4 billion. It also originated $946 million of loans in the quarter, which shows the customer base still shows up. The market still punished the dividend stock as profitability did not sprint ahead of expectations.
That same quarter highlighted the tension that comes with consumer lending. goeasy reported diluted earnings per share (EPS) of $1.98 and adjusted diluted EPS of $4.12, down 5% from the prior year. Investors focused on the adjusted figure, because it captures the core earning power. It also reported a net charge-off rate of 8.9%, down from 9.2% a year earlier, which suggests underwriting and collections still hold the line.
Looking ahead
Those numbers matter for the “rates stay high” debate. Higher rates can help lenders earn more on new originations, but only if credit losses stay contained. goeasy needs to keep proving that it can grow the book without letting losses balloon. Management talked about balancing growth and risk management through a choppy Canadian economy, and that balance will drive the next leg of sentiment.
The forward outlook also carries a near-term catalyst. If goeasy shows stable losses and steady growth during its next earnings report, the market can relax. If losses jump, the dividend stock can feel every macro headline again, even if demand stays healthy.
Valuation looks like the sweetener that keeps the buy case alive. On top of its market cap of $1.9 billion, it trades at a low 8.8 times earnings. That pricing tells you the market already bakes in credit-cycle fear. If it executes, that discount can narrow without needing a rate-cut party. All while holding onto a 4.8% dividend yield, which can bring in ample income even with $7,000.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| GSY | $120.38 | 58 | $5.84 | $338.72 | Quarterly | $6,982.04 |
Bottom line
So could it be a buy if rates stay higher for longer? It could, because it earns income from lending, it can reprice new loans, and it trades at a valuation that does not assume perfection. The risks stay real too. A recession can hit non-prime borrowers first, and one ugly credit quarter can shake confidence fast. If you can handle that volatility and you want a dividend stock that can actually benefit from sticky rates, goeasy looks like a credible pick for this weird moment. Size it modestly, reinvest the dividend if you can, and let the next quarters confirm the story.
