goeasy (TSX: GSY) was one of the top TSX stocks known for consistently paying and growing its dividend at a solid pace. However, its reputation as a leading dividend payer took a hit when the company suspended its dividend payouts in March 2026.
goeasy is Canada’s leading non-prime lender, offering leasing and lending products to subprime consumers.
Why goeasy suspended its dividend
For years, goeasy rewarded its shareholders with regular dividend increases. In February 2020, it joined the S&P/TSX Canadian Dividend Aristocrats Index after growing its dividend at an impressive 42% compound annual growth rate (CAGR) over the previous five years.
The non-prime lender continued that trend in February 2025, announcing a 24.8% increase in its quarterly dividend from $1.17 to $1.46 per share. It was the 11th consecutive year that goeasy had raised its dividend, solidifying its reputation as a strong income stock.
However, things took a sharp turn in March 2026. goeasy’s share price plunged after the company reported significant loan losses and faced criticism from a short-seller. Amid financial pressure, goeasy’s management announced it would suspend its quarterly dividend.
The financial services company reported approximately $331 million in net charge-offs for Q4, largely due to troubled auto and powersports loans in its LendCare division, which it acquired in 2021. These losses pressured its financial performance and forced management to suspend dividend payments.
goeasy is now focused on strengthening its business and improving its financial position. The company is concentrating more on easyfinancial’s unsecured and home equity lending businesses while reducing auto and powersports lending through LendCare’s merchant network. It also intends to bring easyfinancial and LendCare under a unified operating model, improve efficiency, and strengthen LendCare’s leadership. These changes are expected to generate around $30 million in annual cost savings.
What lies ahead for goeasy’s dividend?
goeasy is currently focused on improving its liquidity and getting its credit performance back on track. As management is working to stabilize the business, the company’s dividend remains suspended. Given the challenges it faces, shareholders may have to wait some time before dividend payments resume.
For the third quarter, goeasy expects gross consumer loans to range between $4.8 billion and $5 billion, down from $5.4 billion in the same period last year. This decline in its loan portfolio, along with a lower overall yield on consumer loans, could put pressure on both revenue and earnings.
The company’s annualized loan yield is taking a hit from higher credit loss allowances affecting interest receivable, tighter lending through merchant partners, and a modest slowdown in loans issued directly to consumers.
goeasy’s profitability is likely to face further near-term challenges. Lower yields on consumer loans, continued credit losses, and higher borrowing costs could weigh on adjusted operating income and overall earnings.
Taken together, these factors suggest goeasy may need more time to recover before it can consider resuming its dividend. For now, the company’s priority appears to be strengthening its balance sheet, managing credit risk, and restoring the stability of its lending business. Until its financial performance improves, investors should not expect dividend payments to resume in the near future.
