Financially sound investors in Canada have plenty of picks to choose from when building their self-directed investment portfolios to generate passive income. The TSX has no shortage of high-quality dividend stocks that you can use to make some extra money without lifting a finger. The best dividend stocks have an excellent track record of paying out distributions to shareholders and sustainable payouts, but not all dividend stocks have these qualities.
Today, I will discuss a dividend stock that can be a compelling investment to buy and hold for the long haul. Besides offering attractively yielding dividends, goeasy Ltd. (TSX: GSY) can be a stellar growth stock for your portfolio.
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goeasy
Most of 2025 saw the Canadian stock market put up another excellent performance, with the S&P/TSX Composite Index reaching new all-time highs. However, the Canadian benchmark index pulled back in recent weeks before recovering to hover around its all-time highs again. As of this writing, the index is up by 29% in the last 12 months. In the same period, goeasy stock is down by over 30%.
Despite being a known dividend-growth stock, it trades at a sharp 43% discount from its 52-week high levels, effectively moving in the opposite direction to the rest of the market. The cause of the downturn in its share prices was a change in investor sentiment toward it. A short-seller report questioned the company’s overall risk profile and its accounting practices. The fact that it had higher provisions for loan losses also weighed on the company’s finances, contributing to the further pullback.
To make matters slightly worse, the company’s shift toward secured lending has delivered a hit to its overall portfolio yield. While the move might be good for the long run, it has caused near-term issues that might be making investors feel uneasy in terms of short-term returns.
Despite these factors impacting its performance on the stock market, the underlying business itself is resilient. It continues generating steady and predictable cash flows, making its quarterly dividends easy to sustain. If you have a long-term view of investing in the stock market, GSY stock can be an attractive investment to consider. The fact that it is lagging behind the rest of the market means that the decline lowers the barriers to entry for investors looking for a bargain on the stock market.
Foolish takeaway
As of this writing, goeasy stock trades for $121.58 per share, and it pays its investors $1.46 per share each quarter. Due to the decline in share prices, the payout translates to an inflated 4.8% annualized dividend yield for the stock. Besides the attractive price and higher-than-usual yielding dividends, goeasy stock offers dividend growth.
The dependable dividend stock has been paying shareholders their dividends for over 20 years, increasing them by around 42% each year for the last five of them. This February saw the company announce an almost 25% dividend hike, marking the 11th year that the stock has increased dividends. Between the solid long-term demand in the subprime lending market and its excellent business model, GSY stock can be a good long-term holding to consider for passive income.
