Want $1 Million in Retirement? 3 Stocks to Buy Now and Hold for Decades

Given their solid underlying businesses and strong growth prospects, these three stocks could deliver superior returns in the long run, thus creating substantial wealth for investors.

| More on:
Happy retirement

Image source: Getty Images

The equity markets have turned volatile this month amid weak Chinese economic numbers and growing concerns over the banking sector in the United States. However, investors should not get bogged down by these short-term bouts of volatility but instead go long on quality stocks. Investors can create substantial wealth by staying in the market for longer horizons.

If an investor can grow his $60,000 investments at an annualized rate of around 10% for 30 years, he will have over $1 million at the end of the 30 years. So, here are three stocks that have the potential to grow at a CAGR (compound annual growth rate) over 10% in the long run and make you a millionaire by your retirement.


Dollarama (TSX:DOL) is one of the top stocks to have in your portfolio. Given its extensive presence – with 85% of Canadian households having a store within 10 kilometres – a wide range of products, and value offerings, the company continues to drive its financials. Since 2011, it has grown its topline and net earnings at a CAGR of 10.6% and 16.3%, respectively. Supported by this strong performance, the company has delivered impressive returns of 1,648% over the previous 12 years at a CAGR of 26.9%. Notably, the discounted retailer is trading over 9% higher this year despite the challenging environment.

Meanwhile, given its expansion plans and growth initiatives, I expect the uptrend in Dollarama’s financials to continue. The company plans to add 60 to 70 stores annually to increase its store count to 2,100 by 2031. Besides, it is strengthening its direct sourcing capabilities to offer greater value for its customers. Also, the company is focusing on improving its customer experience by expanding its digital footprint and optimizing its check-out process. While the expansion of Dollarcity, in which the company owns a 50.1% stake, could increase its contribution to its net earnings. Considering all these factors, I believe Dollarama would be an excellent long-term buy.

Waste Connections

Another enticing stock to buy with a longer horizon would be Waste Connections (TSX:WCN), which offers solid waste management services in the United States and Canada. The company operates primarily in secondary or exclusive markets. Given the lesser competition, it is able to pass on the increased expenses to its customers. Besides, the solid waste management company is expanding its footprint through strategic acquisitions. The company has acquired $21.5 billion of assets since 2011, driving its financials and stock price.

Meanwhile, Waste Connections has delivered impressive returns of around 550% over the last 12 years at an annualized rate of 16.8%. Given the essential nature of its business, continued expansion, and strong balance sheet, I expect the uptrend to continue. The company has also raised its dividends at a CAGR of 15% since 2010. So, considering all these factors, I am bullish on Waste Connections.

WELL Health Technologies

WELL Health Technologies (TSX:WELL), a digital healthcare company, would be my final pick. The adoption of virtual healthcare services continues to rise amid the development of innovative products and growing internet penetration, thus expanding the addressable market for the company. Meanwhile, Fortune Business Insights projects the global telehealthcare market to grow at a CAGR of 19.7% through 2030.

Amid a growing addressable market, WELL Health is expanding its footprint across the United States and Canada through strategic acquisitions. It has also launched several initiatives related to artificial intelligence (AI) to develop innovative applications and tools to enhance patient experience. Amid the favourable market conditions, its growth initiatives, and attractive NTM (next 12 months) price-to-earnings of 13.2, I believe WELL Health would be a solid addition to your long-term portfolio.

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 Rajiv Nanjapla 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.

More on Investing

Target. Stand out from the crowd
Dividend Stocks

The Best Stocks to Buy With $10,000 Right Now

The market is full of superb stocks to buy at a considerable discount right now. Here are three of the…

Read more »

edit CRA taxes
Dividend Stocks

CRA Update: Common Mistakes Canadians Make on Tax Returns

The CRA says Canadian taxpayers can maximize tax savings and minimize penalties by avoiding the common mistakes when preparing tax…

Read more »

Dividend Stocks

My Top Dividend Aristocrat to Buy in August (and it’s Not Even Close)

This top Dividend Aristocrat has highly defensive operations and is constantly growing its portfolio, making it one of the best…

Read more »

A bull outlined against a field

A Bull Market Could Be Coming: 3 Reasons to Buy 3 Stocks

Are you waiting for a bull market? It could be around the corner. Find out which stocks to buy today!

Read more »

money cash dividends
Dividend Stocks

1 Dirt-Cheap Dividend Stock for $5,000 in Annual Income

Canadians can generate $5,000 in annual income with the help of a dirt-cheap dividend stock like Timbercreek Financial Corp. (TSX:TF).

Read more »

oil tank at night
Energy Stocks

Is Suncor Stock a Buy Today?

Suncor (TSX:SU) has picked up a bit of a tailwind in the past few weeks. Investors who missed the latest…

Read more »

stock analysis

5 Stocks You Can Confidently Invest $500 in Right Now

These Canadian corporations continue to perform well in all market conditions, making them attractive long-term bets.

Read more »

sale discount best price
Bank Stocks

BCE Stock and Royal Bank Are Straight-Up Bargains Today

BCE (TSX:BCE) and Royal Bank of Canada (TSX:RY) are intriguing bargains to capitalize on right here!

Read more »