My Top 5 TSX Stocks to Buy Right Now for Massive Returns in a Decade

These five TSX stocks have impressive operations and solid growth potential, making them five of the best to buy now.

Image source: Getty Images.

Starting to invest as early as possible and looking for the top TSX stocks to buy now can be incredibly important when you consider the power of compound interest.

However, many investors make the mistake of looking for the hottest stocks to buy today rather than the best businesses altogether.

When investing for the long haul, finding the best possible businesses is essential because it allows you to buy and hold with confidence for years to come, taking full advantage of the power of compounding instead of consistently looking for the hottest stocks and trying to time the market to figure out when the best time to buy is.

So, with that in mind, if you’re looking for some of the top TSX stocks to buy now and hold for the next decade, here are my five top picks.

Two massive Canadian growth stocks that aren’t slowing down anytime soon

Despite the fact that Dollarama (TSX:DOL) is trading just off its 52-week high, it’s easily one of my top TSX stocks to buy right now because of its incredible business model and track record of not just rapid but also consistent growth.

In fact, over the last decade, Dollarama has earned investors a total return of 787% or a compounded annual growth rate (CAGR) of 24.4%.

That is incredible growth and shows what a high-quality company Dollarama is. It doesn’t just have a solid business model that can grow both in recessions and when the economy is growing, but Dollarama has also consistently found ways to improve its merchandising and draw more shoppers into its stores.

Plus, in addition to Dollarama, Alimentation Couche-Tard (TSX:ATD) is another stock with a long track record of consistent growth that can continue to expand its operations over the next decade.

In the past 10 years, the convenience store and gas station operator has earned investors a total return of 470% or a CAGR of 19%.

Couche-Tard has operations in countries all over the world, helping to diversify its operations and mitigate some risks. Furthermore, it’s done an impressive job of growing both by acquisition and organically in order to consistently improve both its sales and profitability, making it one of the top TSX stocks to buy now and hold for the next decade.

Three of the best up-and-coming TSX stocks to buy right now

While Dollarama and Couche-Tard have been growing rapidly for more than a decade now, one of the best growth stocks today that has been growing at an unbelievable pace the last few years is goeasy (TSX:GSY).

In fact, the specialty finance stock has earned a total return of 290% over the last five years, or a CAGR of 31.2%.

goeasy’s business model is slightly riskier than that of big banks since it offers loans to consumers with lower credit ratings who typically can’t get a loan from a traditional bank.

However, that additional risk means it can charge more interest on its loans. And since goeasy consistently manages its risks extremely well, its return on equity is much higher than the banks, leading to significant profitability and rapid growth.

Brookfield Renewable Partners (TSX:BEP.UN) is another top TSX stock to buy right now as the world experiences a significant, decades-long shift to cleaner energy sources, especially since Brookfield is one of the largest companies in the world, helping to lead the charge.

The company has a massive, global portfolio of diversified clean energy assets, plus an impressive management team with a track record of constantly finding undervalued assets or projects. This has led to consistent growth both in the share price as well as the stock’s distribution, which currently yields roughly 5.8%

Finally, WELL Health Technologies (TSX:WELL) is another top TSX stock to buy now and hold for the next decade.

Despite its share price struggling to gain value in recent years, its operations continue to expand. In fact, in the last five years, its revenue has grown at a CAGR of 136%, and it’s already profitable, generating normalized earnings per share of $0.22 in 2023.

Therefore, with more growth potential ahead of it and WELL trading at a forward price-to-earnings ratio of just 15 times today, it’s easily one of the top TSX stocks to buy right 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 positions in Goeasy and Well Health Technologies. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Investing

Dollar symbol and Canadian flag on keyboard
Energy Stocks

3 Canadian Stocks You Can Confidently Buy Now and Hold Forever

You don’t need to think twice about loading up on these three top stocks.

Read more »

edit U-turn
Dividend Stocks

Down 11% From its 52-Week High, Can goeasy Stock Turn Things Around?

Investors looking for value should be drooling at goeasy (TSX:GSY) stock. With a higher dividend and more room to run,…

Read more »

A microchip in a circuit board powers artificial intelligence.
Investing

2 Ways to Safely Invest in AI (Artificial Intelligence)

Here are two Canadian ETFs that provide more diversified exposure to AI stocks.

Read more »

data analyze research
Investing

Canadian Tire Stock Is Getting Ridiculously Oversold

Canadian Tire (TSX:CTC.A) is a deeply discounted dividend stock that could roar as inflation and rates tank from here.

Read more »

risk/reward
Bank Stocks

TD Bank Stock: Worth the Risk for Long-Term Gains

Yes, the company has concerns. But long-term investors should be able to reap the rewards from TD Bank (TSX:TD) as…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, July 23

TSX stocks may remain volatile today as investors look forward to the second-quarter earnings season and the Bank of Canada’s…

Read more »

calculate and analyze stock
Dividend Stocks

Sun Life Stock Is Paying $3.24 Per Share in Dividends: Time to Buy the Stock?

Sun Life (TSX:SLF) stock recently bumped its dividend upwards by 4%, creating even more value for investors today.

Read more »

Payday ringed on a calendar
Bank Stocks

TFSA Passive Income: Earn $500/Month

High yield stocks like First National Financial (TSX:FN) can get you to $500 per month in passive income with surprisingly…

Read more »