2 Reliable Canadian Growth Stocks to Buy and Hold Forever

These two top Canadian growth stocks have highly reliable businesses, giving investors the confidence to buy and hold for years.

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When the market environment worsens and stocks sell off consistently, even some of the best companies can be temporarily impacted. This can cause investors to doubt even the highest-quality companies, which can potentially lead to you selling these top Canadian growth stocks at a time when you should be taking advantage of the opportunity to buy stocks cheaply that you can own forever.

Market cycles are unavoidable. However, if you’re a long-term investor, temporary dips in the stock price shouldn’t have much of an impact on your long-term success.

In fact, since cycles are unavoidable, they create excellent opportunities to buy stocks while they’re cheap and expand your portfolio.

So, if you’re looking for some of the best Canadian growth stocks to buy that you can have confidence owning in this environment, here are two examples of high-quality companies to consider.

This discount retailer is one of the best Canadian growth stocks you can buy

There’s no question that one of the best Canadian growth stocks you can buy, especially in the current economic environment, is Dollarama (TSX:DOL).

Going back to 2009, since Dollarama went public, it’s never had a single year where sales didn’t grow. In fact, the lowest year-over-year sales growth it ever had was 6.7%.

It’s also never even had a single quarter where sales didn’t grow year over year, showing just how impressive of a stock Dollarama is.

Much of this impressive and consistent growth is due to it being a discount retailer. There will never be a shortage of consumers looking to buy discounted goods, especially when many of those goods are household staples.

However, not only does Dollarama have considerable growth potential in this highly uncertain macroeconomic environment, but because its execution has also been so impressive over the years, it also has tonnes of long-term growth potential, as it continues to increase its store count, making it one of the best Canadian stocks to buy now.

In just the last five years alone, for example, Dollarama’s revenue and earnings per share (EPS) have increased by 51% and 77%, respectively. Furthermore, over that stretch, investors have earned a total return of almost 60%, or a compound annual growth rate (CAGR) upwards of 9.6%.

And going forward, it’s expected to continue growing its sales, margins, and profitability. In fact, for fiscal 2024 and fiscal 2025, analysts expect normalized EPS to increase by 17.1% and 16.6%, respectively.

Therefore, if you’re looking for a high-quality and reliable Canadian growth stock that you can buy and hold for years, Dollarama is undoubtedly one of the best investments that Canadians can make.

A top health and wellness stock

Just as Dollarama operates in an industry that’s highly defensive, making it ideal for this uncertain environment, Jamieson Wellness (TSX:JWEL) is another high-quality Canadian stock to buy now and hold for years.

Jamieson is a health and wellness stock that manufactures, markets and distributes tonnes of different vitamins, minerals and other health supplements, an industry that’s typically highly defensive.

Although Jamieson Wellness has been around for over 100 years, founded in 1922, it only went public in 2017. In those five years, though, its performance has been impressive.

From 2017 to 2022, sales grew from $300 million to just under $550 million — an increase of 82%, or a CAGR of 12.7%.

Furthermore, in those five years, it increased its operating earnings from $45 million in 2017 to over $90 million in 2022 — an increase of 103%, or a CAGR of 15.2%, showing why it’s one of the best Canadian growth stocks to buy now.

And recently, it’s made a significant acquisition to increase its footprint south of the border, creating a tonne of growth potential over the coming years.

In 2022 alone, Jamieson grew its sales by over 21% and is expected to increase its revenue by 25.5% in 2023.

Plus, the average analyst target price is $45.50 — a more than 25% premium to where it trades today. That’s an attractive discount for such a high-quality and low-volatility stock like Jamieson.

Therefore, if you’re looking for a safe and reliable investment that can provide you with significant growth potential for years, Jamieson is one of the best Canadian growth stocks to buy now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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