Whereas the broader indices are hovering close to all-time highs, a number of TSX dividend shares are buying and selling under file ranges in October 2025. Investing in beaten-down dividend shares which are essentially sturdy supplies Canadians with a chance to profit from an elevated dividend yield and long-term capital beneficial properties.

On this article, I’ve recognized one prime Canadian dividend inventory that’s down 23% from all-time highs and presents a dividend yield of three.6%. Valued at a market cap of $2.6 billion, goeasy (TSX:GSY) is anticipated to pay shareholders an annual dividend per share of $5.56, up from $0.48 in 2016.

Within the final 20 years, the TSX inventory has returned 840% to shareholders. After adjusting for dividends, cumulative returns are nearer to 1,530%. It means a $1,000 funding in goeasy inventory again in October 2005 could be value $16,340 at present.

Let’s see if this prime TSX dividend inventory remains to be a very good purchase proper now.

Is goeasy a very good inventory to personal?

goeasy is a small-cap firm that gives non-prime leasing and lending companies below the easyhome, easyfinancial, and LendCare manufacturers to customers in Canada. It presents unsecured and secured installment loans, residence fairness and residential enchancment, secured installment loans, and automotive car financing, and loans to finance the acquisition of retail items, powersports, and leisure autos.

Canada’s main non-prime lender reached a key milestone within the second quarter, surpassing $5 billion in mortgage receivables after including $313 million within the June quarter. goeasy originated $904 million in loans, which exceeded expectations and demonstrated sturdy demand throughout all product classes regardless of ongoing financial uncertainty. The corporate expects its mortgage ebook to finish 2025 on the prime finish of its steerage vary of between $5.4 billion and $5.7 billion.

Within the second quarter (Q2) of 2025, goeasy reported income of $408 million, a 11% improve 12 months over 12 months, pushed by improved product combine and pricing optimization. Complete yield elevated 50 foundation factors sequentially to 31.8%, pushed by stronger ancillary gross sales and improved collections. The effectivity ratio improved to 25.6%, a 130-basis-point lower from final 12 months, as the corporate leverages its scale benefits.

Credit score efficiency continues to enhance, as internet charge-offs declined to eight.8%, a 50-basis-point year-over-year lower and a 10-basis-point quarter-over-quarter lower. Late-stage delinquencies above 90 days decreased from 3.3% to 2.8% as goeasy optimized its assortment processes.

The secured portion of the portfolio now represents 48%, up from 44.5% a 12 months in the past, reflecting sturdy development in auto and residential fairness loans.

CFO Hal Khouri famous that the corporate raised US$400 million in senior notes through the quarter at a beneficial rate of interest of 6.03% after hedging. With $1.74 billion in whole funding capability and $377 million in trailing free money move, goeasy maintains ample liquidity to assist natural development with out relying closely on exterior debt.

The corporate has served over 1.6 million Canadians and originated $17.5 billion in loans since its inception, delivering a median return on fairness of 25.4% over the previous 5 years. Administration strengthened confidence in sustaining disciplined underwriting whereas capturing market share, as bigger banks tightened lending requirements and smaller opponents exited the market.

Is that this TSX dividend inventory undervalued?

Analysts monitoring goeasy inventory forecast income to extend from $1.52 billion in 2024 to $2.16 billion in 2027. On this interval, adjusted earnings are forecast to develop from $16.71 per share to $26.37 per share.

Over the past 10 years, GSY inventory has traded at a median price-to-earnings a number of of 9.8 occasions, which is increased than the present a number of of eight occasions. If GSY inventory trades at 9 occasions earnings, it ought to commerce round $237 in early 2027, indicating an upside potential of 46% from present ranges.

Furthermore, Bay Avenue expects its annual dividend per share to $7.21 in 2027, enhancing the efficient yield to 4.5%.