Some of the best long-term stocks are found in the consumer sector, where companies provide products and services that people buy no matter what’s happening in the economy. If you have $3,500 to invest, you can spread it across five top Canadian consumer stocks to multiply your hard-earned savings in the long run. Let’s take a closer look at five of the best consumer stocks for buy-and-hold investors.
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George Weston stock
The first consumer stock you can consider in 2025 is George Weston (TSX:WN). This Toronto-based company owns grocery giant Loblaw and real estate powerhouse Choice Properties. Right now, WN stock trades at $223.96 per share, with a market cap of $29.1 billion and a 1.5% annualized dividend yield.
In the third quarter of 2024, George Weston’s revenue rose 1.5% YoY (year over year) to $18.7 billion, while its adjusted earnings climbed by 6.3% to $3.57 per share. The strong performance of Loblaw’s discount stores and pharmacy sales helped it maintain stable growth, while Choice Properties benefited from strong leasing demand. With continued investments in store expansions and a focus on necessity-based retail and real estate, George Weston remains a top stock for investors looking for stability.
North West Company stock
North West Company (TSX:NWC) is another solid consumer stock that fits well in a long-term portfolio. NWC stock is currently trading at $46.45 per share, with a market cap of $2.2 billion and a 3.4% annualized dividend yield. While NWC’s revenue increased by 3.3% YoY in the latest quarter to $637.5 million, higher costs and tax expenses led to a slight dip in net earnings.
Despite near-term challenges, North West is investing in operational improvements through its Next 100 initiative, focusing on merchandise refinement and store efficiency. These steps, combined with its recession-resistant business model, make it an attractive long-term investment for those looking for stability and passive income.
Empire Company stock
Another solid consumer stock pick is Empire Company (TSX:EMP.A), the parent of Sobeys, FreshCo, Farm Boy, and more. The stock trades at $43 per share, with a $10.1 billion market cap and a 1.9% dividend yield.
In its latest quarter ended in October 2024, Empire’s revenue hit $7.78 billion, with 1.8% YoY same-store sales growth (excluding fuel). Similarly, its adjusted earnings edged up to $0.73 per share, and gross margins improved. The company is currently investing heavily in store renovations, e-commerce expansion through Voilà, and loyalty programs, which are expected to improve its financial growth in the coming years.
Canadian Tire stock
Speaking of strong consumer stocks, Canadian Tire (TSX:CTC.A) is another solid pick for long-term investors. Known for its extensive retail network spanning automotive, sporting goods, and home products, this iconic Canadian company has been a household name for decades. Currently, the stock trades at $160.11 per share, with a market cap of $9.1 billion and an annualized dividend yield of 4.4%.
Despite a 1.5% YoY decline in consolidated comparable sales due to weaker consumer spending in the September 2024 quarter, increased consumer engagement helped Canadian Tire deliver strong retail profitability for the third straight quarter, with its adjusted earnings jumping 21.3% YoY to $3.59 per share. Canadian Tire is doubling down on store upgrades, digital expansion, and supply chain efficiencies, which could improve its fundamentals in the coming years.
Dollarama stock
As Canada’s leading discount retailer, Dollarama (TSX:DOL) is a top recession-resistant stock in Canada. DOL stock currently trades at $139.39 per share, with a market cap of $38.7 billion.
In its latest quarter, Dollarama’s sales jumped 5.7% YoY to $1.56 billion, with comparable store sales rising 3.3%. Strong demand for consumables helped the company maintain steady growth, though seasonal item sales were softer.
Moreover, Dollarama is expanding aggressively, raising its long-term store target to 2,200 locations by 2034, which should accelerate its growth in the years to come, making it a top buy-and-hold stock for stability and long-term growth.
