Unable to post the entire article so here's the link. GLTA
https://www.adviceforinvestors.com/news/bargain-stocks/goeasy-earned-record-profits-again/
Goeasy earned record profits again
Goeasy Ltd’s (TSX—GSY) poor year-to-date performance surprised us because goeasy achieved record earnings in the three months to March 31. Specifically it earned $45.8 million, or $2.72 a share. This was up by 16 per cent from earnings of $36.7 million, or $2.34 a share, a year earlier.
Goeasy provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. The company offers a wide variety of financial products and services including unsecured and secured installment loans.
Customers can transact seamlessly through an omni-channel model that includes an online and mobile platform, over 400 locations across Canada, and point-of-sale financing offered in the retail, power sports, automotive, home improvement and healthcare verticals, through more than 4,000 merchants across Canada.
Throughout the Company’s history, it has acquired and organically served over 1.1 million Canadians and originated over $8.2 billion in loans, with one in three easyfinancial customers graduating to prime credit and 60 per cent increasing their credit score within 12 months of borrowing.
Goeasy’s rising dividends are sustainable
In addition to record profits, goeasy raised its dividend for the eighth year in a row, to $3.64 a share. That is, it remains a dividend aristocrat. In Canada, that refers to companies that have raised their dividends for at least five consecutive years. Goeasy provides an attractive dividend yield of 3.2 per cent.
Sometimes, attractive dividend yields can signal the danger of a dividend cut. However, goeasy’s dividends are sustainable. In 2022, its earnings are expected to climb by 13 per cent to $11.79 a share. Next year, the company’s earnings growth is expected to accelerate by 23.7 per cent, to $14.59 a share. This greatly exceeds goeasy’s dividend.