Retail stocks are some of the most intriguing options on the market. While most are targeted at growth-seeking investors, several can offer tasty dividends, too. In short, there’s no shortage of must-watch TSX retail stocks on the market.
Here’s a look at some of those must-watch TSX retail stocks to buy in 2025.
Start with a great defensive pick
One of the best TSX retail stocks to consider now is Metro (TSX:MRU). Metro is one of the largest grocery stocks in Canada. The company boasts a network of nearly 1,000 stores and over 600 pharmacy locations.
Grocers like Metro provide a necessary service, which makes them some of the most defensive picks on the market. That defensive appeal is growing further, particularly as “buy Canadian” efforts put a focus on locally sourced goods.
That’s part of the reason why the stock has surged over 30% in the trailing 12-month period. Another reason to consider this as one of the must-watch TSX retail stocks is for its dividend.
Metro pays out a quarterly dividend, which currently works out to a yield of 1.54% as of the time of writing. That’s not the highest return on the market, but it is stable and continues to grow.
In fact, Metro has provided investors with consecutive annual bumps to that dividend for well over two decades. This makes the stock a great option and one of the must-watch TSX retail stocks for any portfolio.
Want dividends and growth? Consider this stock
Another one of the TSX retail stocks to consider right now is Canadian Tire (TSX:CTC.A). Canadian Tire is one of Canada’s best-known retailers, with a large portfolio of brands across different retail segments.
By way of example, that includes apparel, automotive parts, sporting goods, party supplies and financial services. It’s a diverse line of products that helps Canadian Tire expand across a narrow vertical like some other retailers.
More importantly, it provides multiple revenue streams for the company, which allows it to invest in growth. An example of this is the company working on ways to source locally and avoid the impact of any potential tariffs.
One final reason to note Canadian Tire as one of the must-watch TSX retail stocks is the company’s dividend. As of the time of writing, Canadian Tire pays out an impressive 3.06% yield.
Pick a growth king
One final pick among TSX retail stocks to note now is Alimentation Couche-Tard (TSX:ATD). Couche-Tard is one of the largest gas station and convenience store operators on the planet.
Convenience stores and gas stations represent yet another incredibly defensive retail option for investors. In the case of Couche-Tard, prospective investors not only have one of the must-watch TSX retail stocks but also one that screams opportunity.
Couche-Tard has taken a very aggressive stance on growth. The company has completed over 60 different acquisitions in the past two decades. That insatiable appetite for growth is a key reason why Couche-Tard has grown as much as it has. In fact, the stock has surged over 30% in the past 12-month period.
Now, the company is going after the biggest convenience store operator on the planet, the Japanese-owned 7-Eleven. The proposed offer sits at a whopping US$47.5 billion and, if successful, would make Couche-Tard the largest retailer in the convenience store space.
The deal will also represent a huge opportunity for Couche-Tard to expand further into Asian markets, where it only has a limited presence.
For long-term investors, Couche-Tard represents one of the must-watch TSX retail stocks with massive long-term potential.
Final thoughts on these must-watch TSX retail stocks
No stock, even the most defensive, is without some risk. Fortunately, the list of must-watch TSX retail stocks noted above offers some defensive appeal in addition to that stellar growth appeal.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
Buy them, hold them, and watch them grow.
