One Dreamy Dividend Stock Boosts Dividend by 21%!

April 11, 2024 04:01 AM EDT | By Team Kalkine Media
 One Dreamy Dividend Stock Boosts Dividend by 21%!
Image source: shutterstock

Evaluating dividend stocks is often simpler than assessing growth stocks because dividend payers primarily require scrutiny of their financial health to maintain consistent dividend-based returns. Although dividend stocks are not immune to market forces, sticking to relatively safer options like dividend aristocrats with long histories of dividend growth can mitigate risks. 

One such example is goeasy (TSX:GSY). Despite being a newer entrant to the dividend aristocrat group, with just an eight-year streak of dividend growth, its significant dividend increases make it attractive. 

goeasy dividends 

While dividends might not be the first consideration for goeasy investors, the company has delivered impressive price appreciation of 266% over the last five years, with dividends included, enhancing returns by 320%. Although its yield typically remains modest due to rapid growth, the company has consistently increased dividends, making its yield more appealing than many growth stocks. Currently, the yield stands at 2.7%. 

The company's financial sustainability is another reason to consider its dividends. Its payout ratio has remained relatively conservative, even compared to Canadian bank stocks, known for their stability. Over the past decade, the payout ratio peaked at 43%. 

Moreover, goeasy's dividend growth is noteworthy. The recent quarterly dividend announcement of about $1.1700 per share reflects a 21.8% increase from the previous year, surpassing the growth rate of many dividend aristocrats. 

goeasy stock 

Both the dividends and growth potential make goeasy an attractive investment option. The company boasts healthy financials and a broad national reach, driving significant organic growth. Its role as one of Canada's leading alternative financial institutions, serving a large underserved market of individuals with poor credit, positions it well for long-term growth. 

In conclusion, while goeasy stock has already experienced considerable growth, it remains modestly discounted, offering investors an opportunity to benefit from both a good yield and potential capital appreciation as the company continues its growth trajectory. 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.