1 remarkable Canadian growth stock (with dividends) to own forever

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Shares of most growth companies in Canada have seen steep declines this year. As macro-level worries like high inflation and rapidly rising interest rates began to hurt sentiment, investors worried about an impending recession. This is one of the main reasons that caused most Canadian growth stocks to fall in the first half of 2022.

Nonetheless, some high-growth stocks are enjoying a healthy rally in the current quarter with early signs of easing inflationary pressures. To take advantage of the ongoing rally in growth stocks, you may want to consider adding them to your long-term stock portfolio. In this article, I’m going to highlight one of those remarkable high-growth stocks that I find worthy of owning forever. Interestingly, this growth stock also pays good dividends.

easy stock

easy (TSX: GSY) is a Mississauga-based financial services company with a market capitalization of approximately $2 billion. The business is primarily focused on the leasing and non-preferential lending services of unsecured and secured installment loans across Canada through its brands, including easyhome, easyfinancial and LandCare. Its fundamental strengths, such as a diversified lending platform, continued loan portfolio and revenue growth, and focus on new quality acquisitions make it a remarkable growth stock to own forever in Canada.

goeasy stock has generated outstanding positive returns of 401% over the past three years, rising from $35.77 per share at the start of 2019 to $179.27 per share at the end of 2021. However, a sell-off in high-growth stocks affected the movement of its stock price earlier this year. , as it plunged 45% in the first half of 2022 to less than $100 per share.

Nonetheless, a recent rally in Canadian growth stocks on the back of recent weaker-than-expected US inflation numbers and better-than-expected latest quarterly results from goeasy are helping it rally this quarter. With that, GSY stock has already recovered 30.5% in the third quarter so far to $128.06 per share. At the current market price, the stock also has a decent dividend yield of around 2.8%.

Why This Growth Stock Is Worth Buying Right Now

August 10, goeasy announcement its second quarter financial results. During the June quarter, the company reported a 24.4% year-on-year (year-over-year) increase in total revenue to $251.7 million, driven primarily by strong growth in 30% of revenue from its easyfinancial segment. Goeasy’s quarterly organic lending growth reached a new record high of $216 million with stable credit performance. These factors helped it post an 8.4% year-over-year increase in second-quarter adjusted earnings to a record $2.83 per share, also beating analysts’ estimates.

Additionally, the Canadian financial services company’s housing and auto finance equity growth performance improved in the last quarter. Recent accelerated growth in the consumer loan portfolio has encouraged goeasy to raise its revenue outlook for 2022, 2023 and 2024. The company now expects its loan portfolio to approach $4 billion in 2024.

At the end of the line

goeasy continues to record strong financial growth, which also improves its growth prospects for the coming years. Despite rallying 30% in the current quarter, its current stock price doesn’t really reflect these positive factors, especially when it’s down about 29% year-to-date. Given this, I expect its stock’s recently started rally to continue over the next few months, making it one of the best growth stocks in Canada to buy now and hold for the long term. .

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