3 Stable Stocks With the Highest Growth of the Last Decade

These 3 TSX stocks haven’t just had the highest growth over the last decade, they also had the most stable growth in that time! So what are you waiting for?

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 17, 2024 8:00 am EDT

When looking for stable and high-growth stocks on the TSX, few stand out quite like Constellation Software (TSX:CSU), Dollarama (TSX:DOL), and WSP Global (TSX:WSP). These three companies have delivered remarkable growth over the past decade, with CSU seeing an astonishing 1,750% growth, DOL rising by 810%, and WSP climbing by 780%. For long-term investors, these stocks have offered a rare combination of stability and consistent returns, making them ideal choices for those looking to build wealth steadily over time.

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Constellation stock

Let’s start with Constellation stock, a company that specializes in acquiring and managing vertical market software businesses. Founded in 1995, Constellation stock’s growth strategy has been all about acquisitions, and it’s been remarkably successful at it. By focusing on buying smaller, niche software companies, CSU has built a strong portfolio of businesses that deliver stable, recurring revenue.

The company’s management, led by CEO Mark Leonard, has consistently executed this strategy with discipline, resulting in a 1,750% stock price increase over the last decade. As of its most recent earnings report, Constellation stock achieved $9.3 billion in revenue, reflecting 21% year-over-year growth. Its operating margin of 12.9% and a return on equity of 15.9% highlight the company’s efficiency and profitability.

Dollarama stock

Dollarama stock, Canada’s go-to dollar store chain, has been another TSX success story. Founded in 1992, Dollarama stock has grown rapidly by expanding its store footprint and offering a range of affordable products that cater to cost-conscious consumers.

This business model has proven to be both recession-resistant and highly profitable, as shown by Dollarama stock’s 810% growth over the past decade. Dollarama’s strong management team has focused on driving operational efficiencies and maintaining competitive pricing. This has kept consumers coming back.

In its most recent quarter, Dollarama reported $6.1 billion in revenue, with a profit margin of 17.9% and an impressive return on equity of 156.5%. These numbers demonstrate why Dollarama stock should continue to be a strong long-term buy.

WSP stock

WSP stock rounds out this trio of high-growth, stable stocks. A leader in engineering and design services, WSP stock has benefited from global infrastructure investment. The company’s expertise ranges from transportation to environmental projects, positioning it well for continued demand as governments and companies focus on building sustainable infrastructure.

WSP stock’s growth has been steady, with a 780% increase in stock price over the last decade. The company’s management has executed a strategy focused on both organic growth and strategic acquisitions. This expanded its global footprint. WSP’s latest earnings report highlighted $14.8 billion in revenue, an 8.5% year-over-year increase, with a return on equity of 9.4% – an indicator of solid, long-term growth potential.

The key takeaway?

A common thread among these companies is their strong management teams. All three have demonstrated the ability to navigate different market conditions, with a focus on growth and profitability. CSU’s disciplined acquisition strategy, Dollarama’s operational efficiency, and WSP’s expansion into new markets have all contributed to long-term success. Plus, these companies have consistently delivered solid earnings momentum. This performance supported their impressive stock price growth.

Another key factor is that each of these companies operates in sectors that are relatively insulated from economic downturns. CSU’s software businesses provides essential services to niche industries. Dollarama’s low-cost retail model thrives in both good and bad times. WSP’s focus on infrastructure means it benefits from long-term global investment trends.

Bottom line

Altogether, Constellation Software, Dollarama, and WSP Global have been three of the most stable and highest-growth stocks on the TSX over the past decade. With disciplined management, strong earnings, and sound business strategies, these companies have consistently delivered for shareholders. For investors looking for a mix of stability and growth, these three stocks are excellent candidates for long-term wealth building.