3 Stocks to Buy and Hold for Total Returns

For investors seeking excellent total returns over the long haul, here are three Canadian stocks to buy before the market catches on.

| More on:

Image source: Getty Images.

As an investor, you may get distracted by temporary issues when the market fluctuates. However, if a stock performs well, there’s always the temptation to sell and lock in those gains. Some stocks are buy-and-hold opportunities that are worth leaving on the shelf and forgetting about. These three growth stocks I’m going to discuss in this article have excellent total return upside and remain among the most robust options Canadian investors can choose from to create a balanced long-term portfolio.

With that, let’s dive in!


One of the biggest e-commerce platform providers in the world, Shopify (TSX:SHOP) offers a range of services to small- and mid-sized businesses. The company’s ability to enable a plethora of retailers to move online has provided incredible long-term growth. Zooming out on the stock chart below, early investors have clearly been rewarded by stocking with Shopify since its inception.

Of course, the stock chart has looked quite different since Shopify hit its peak in late 2021. Indeed, despite a recent impressive rally off of 2022 lows, Shopify still remains roughly 50% below its all-time high, meaning another big move could be on the horizon if investors value the company’s future cash flows in a similar fashion as they did a little more than two years ago.

The company’s fourth-quarter (Q4) revenue-growth rate of 26% remains strong, and investors betting on a reacceleration of growth moving forward may be well-rewarded by buying this stock here.

Boyd Group

Boyd Group (TSX:BYD) is a Canadian-based auto body and glass repair services company. The company operates predominantly under the brand name Boyd Autobody and Glass in Canada and Gerber Collision and Glass in the United States. It derives a majority of its revenue from activities in the U.S., making this an excellent pick for Canadian investors looking for geographical diversification outside of Canada.

Boyd’s long-term chart is about as impressive as the other names on this list. The company continues to grow via an acquisition-oriented model, in which the company scoops up mom-and-pop players in key markets, consolidating the overall sector.

With decades of potential consolidation ahead of Boyd, this is a company with plenty of growth runway. The company’s revenue growth rate of 23% is almost as impressive as Shopify’s (which really says something), and BYD stock does provide a small dividend yield of just 0.2%.

No investor is really going to buy this stock for its dividend — it’s all about Boyd’s long-term growth prospects. In that regard, there are few better options on the TSX right now, in my opinion.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) operates a convenience store network in North America, Scandinavia, Ireland, Poland, Russia and the Baltics. It primarily generates revenue through selling groceries, tobacco products, fresh food, quick service restaurants, etc. Moreover, the company operates under the name Circle K in China, Malaysia, and Egypt. 

The company has agreed to acquire retail assets from the French energy giant Total Energies SE for $4.5 million to expand its operations in Europe. This move furthers the company’s growth strategy, which is similar to Boyd’s, with Couche-Tard’s focus on consolidating the gas station and convenience store space in its core markets rather than auto body shops.

That said, Couche-Tard’s ability to go into new markets, acquire a footprint, and immediately improve the return on equity and key operational metrics of the businesses it acquires is impressive. This is a company that continues to pump out surging top- and bottom-line growth, allowing Couche-Tard to continue to raise its dividend (most recently by 25%).

In terms of total returns, Couche-Tard could be the best pick on this list. Rest assured, long-term growth investors are going to get some serious growth owning these three names.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Shopify. The Motley Fool recommends Boyd Group Services. The Motley Fool has a disclosure policy.

More on Investing

Growing plant shoots on coins

This Growth Stock Has Market-Beating Potential

Here's why Restaurant Brands (TSX:QSR) remains the top TSX growth stock long-term investors should consider for big gains.

Read more »

protect, safe, trust
Dividend Stocks

How to Earn Safe Dividends With Just $10,000

Earn reliable income with relatively safe stocks like Fortis.

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

2 Dividend Stocks to Beat Inflation

These two TSX dividend stocks can be excellent holdings to beat inflation, even as inflation cools down.

Read more »

dividends grow over time
Dividend Stocks

TFSA: Invest $20,000 and Get $860/Year of Predictable Passive Income

Looking for safe passive income that will grow and build wealth inside your TFSA. Check out this four-stock portfolio of…

Read more »

Increasing yield
Dividend Stocks

3 Overlooked High-Yielding Dividend Stocks to Buy Right Now

These three dividend stocks are excellent buys, given their discounted prices and high yields.

Read more »

Dad and son having fun outdoor. Healthy living concept
Dividend Stocks

Married? Have Kids? Grab These 5 CRA Tax Breaks

You can transfer dividend income from stocks like Suncor Energy Inc (TSX:SU) to your spouse and enjoy tax savings that…

Read more »

You Should Know This
Dividend Stocks

Why Claiming CPP at 65 Could Be a Mistake

The CPP pegs the start retirement age at 65, but it's not necessarily the ideal option to start pension payments.

Read more »

Oil pumps against sunset
Energy Stocks

2 Absurdly Cheap Energy Stocks I’d Buy in April 2024

Here's why undervalued TSX energy stocks such as Secure Energy Services should be part of equity portfolio in 2024.

Read more »