The Canadian stock market has delivered strong performance over the past year, with the S&P/TSX composite index increase by about 30%. Interest rate cuts and resilient consumer spending have fueled optimism, pushing many Canadian stocks to new highs. However, not all TSX stocks participated in this rally. A notable laggard is easy (TSX:GSY). This high-quality Canadian dividend stock has moved sharply in the opposite direction.
Through 2025, goeasy shares are down more than 16%, and the stock is now trading about 37% below its 52-week high of $216.50. The selloff was largely driven by a short seller report that raised concerns about the company’s accounting practices and risk profile. That pressure was amplified by higher provisions for credit losses and financing costs in the third quarter (Q3) of 2025. Moreover, goeasy’s strategic pivot to secured loans is weighing on overall returns. Together, these factors weighed on near-term gains and dampened investor confidence, even as the broader market continued to rise.
While these headwinds have impacted short-term results, goeasy’s fundamentals remain solid and the company continues to generate sufficient cash to support its dividend payments. So the recent decline in goeasy stock is an opportunity for long-term investors to buy and hold these top Canadian dividend stocks at a discount.
goeasy’s history of dividend payments
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 under changing economic conditions and its commitment to increasing shareholder value.
That consistency has been accompanied by impressive growth. In February 2020, goeasy earned a spot in the S&P/TSX Canadian Dividend Aristocrats Index after posting a remarkable 42% compound annual growth rate (CAGR) in its dividend over the past five years.
In February 2025, goeasy announced a substantial 24.8% increase in its quarterly dividend, from $1.17 to $1.46 per share. This increase marked the eleventh consecutive year in which shareholders received a higher dividend, highlighting management’s confidence in the company’s earnings power and cash flow generation.
The growth rate has been particularly remarkable in recent years. Since 2021, goeasy’s annual dividend has increased 121%, 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 prospects remain compelling
Despite the short-term headwinds, goeasy remains well positioned to maintain and grow its dividend over time. The financial services firm’s tighter underwriting and focus on secured loans may put some pressure on profits in the short term, but this move significantly reduces long-term credit risk and lays the foundation for more stable and predictable profits. It increases the sustainability of future dividend payments.
Looking ahead, goeasy could benefit from several factors. Demand for loans remains strong, especially in the large, underserved subprime lending market in which the company specializes. The diversified financing sources and efficient omnichannel business model further strengthen its competitive position. Management expects gross consumer loan advances to grow to between $7.35 billion and $7.75 billion by 2027, in addition to expanding operating margins. These trends should translate into healthier cash flows, providing sufficient support for continued dividend payments and increases. Ongoing initiatives to improve operational efficiency and maintain disciplined credit performance further strengthen the company’s earnings growth trajectory.
Furthermore, goeasy shares are currently trading at a price-to-earnings (P/E) ratio of roughly 6.8, which represents a significant discount to its earnings growth potential. Given the company’s history of double-digit earnings growth, consistent dividend increases, and an attractive yield, the current valuation suggests the stock is undervalued. For investors, goeasy offers income, value and growth, making it an attractive long-term investment.
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