Charges have stopped feeling momentary. The Financial institution of Canada held its coverage price at 2.25% on Jan. 28, 2026, and it pointed to uncertainty tied to U.S. commerce coverage. That call adopted one other maintain late in 2025, so Canadians now dwell with an actual “increased for longer” backdrop. Some dividend shares can thrive in that setup as a result of they earn extra on recent lending, preserve pricing energy, and keep away from the long-duration math that hurts richly valued progress names when yields refuse to fall.
If you’d like a dividend inventory forward of the subsequent price name, begin with sturdiness, not the headline yield. Greater charges elevate funding prices and expose weak steadiness sheets. You need a enterprise that may reprice income quicker than bills, handle credit score tightly, and nonetheless generate sufficient money to pay shareholders. The dividend ought to sit on high of an actual progress engine, not a hope that price cuts will arrive on schedule.
GSY
goeasy (TSX:GSY) suits this second because it operates the place conventional banks usually say “no thanks.” It offers shopper credit score by easyfinancial and it serves non-prime debtors who nonetheless want predictable entry to funds. When charges keep excessive, that demand doesn’t disappear. It may even develop, as households nonetheless face automotive repairs, lease gaps, and life surprises that refuse to attend for cheaper cash.
Over the past yr, goeasy gave buyers each the expansion story and the truth examine. In its third quarter of 2025, it grew income 15% yr over yr to $440 million, and it lifted its mortgage portfolio to $5.4 billion. It additionally originated $946 million of loans within the quarter, which reveals the client base nonetheless reveals up. The market nonetheless punished the dividend inventory as profitability didn’t dash forward of expectations.
That very same quarter highlighted the strain that comes with shopper lending. goeasy reported diluted earnings per share (EPS) of $1.98 and adjusted diluted EPS of $4.12, down 5% from the prior yr. Buyers targeted on the adjusted determine, as a result of it captures the core incomes energy. It additionally reported a internet charge-off price of 8.9%, down from 9.2% a yr earlier, which suggests underwriting and collections nonetheless maintain the road.
Wanting forward
These numbers matter for the “charges keep excessive” debate. Greater charges may also help lenders earn extra on new originations, however provided that credit score losses keep contained. goeasy must maintain proving that it will possibly develop the ebook with out letting losses balloon. Administration talked about balancing progress and danger administration by a uneven Canadian economic system, and that steadiness will drive the subsequent leg of sentiment.
The ahead outlook additionally carries a near-term catalyst. If goeasy reveals secure losses and regular progress throughout its subsequent earnings report, the market can chill out. If losses bounce, the dividend inventory can really feel each macro headline once more, even when demand stays wholesome.
Valuation appears to be like just like the sweetener that retains the purchase case alive. On high of its market cap of $1.9 billion, it trades at a low 8.8 instances earnings. That pricing tells you the market already bakes in credit-cycle concern. If it executes, that low cost can slim without having a rate-cut social gathering. All whereas holding onto a 4.8% dividend yield, which may herald ample revenue even with $7,000.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| GSY | $120.38 | 58 | $5.84 | $338.72 | Quarterly | $6,982.04 |
Backside line
So might it’s a purchase if charges keep increased for longer? It might, as a result of it earns revenue from lending, it will possibly reprice new loans, and it trades at a valuation that doesn’t assume perfection. The dangers keep actual too. A recession can hit non-prime debtors first, and one ugly credit score quarter can shake confidence quick. In the event you can deal with that volatility and also you need a dividend inventory that may really profit from sticky charges, goeasy appears to be like like a reputable decide for this bizarre second. Dimension it modestly, reinvest the dividend in case you can, and let the subsequent quarters affirm the story.