Investing $7,000 wisely now can yield significant dividends in the future. Starting early allows your money to compound over time, helping your initial investment grow exponentially. Further, that momentum can build substantially over the years, especially when your money is placed in fundamentally strong, growth-oriented TSX stocks.
Moreover, utilizing a Tax-Free Savings Account (TFSA) can help maximize returns. The TFSA lets your returns grow tax-free, making a meaningful difference in your portfolio’s value in the long run.
Notably, the 2025 TFSA contribution limit is set at $7,000. So, if you are ready to invest $7,000, here are the top Canadian stocks that can generate significant returns.
Dollarama stock
Dollarama (TSX:DOL) could be a solid investment for long-term investors. This discount retailer has consistently outperformed the broader market with its returns, thanks to its defensive business model and solid growth.
The company’s strategy revolves around offering a wide range of everyday essentials at consistently low prices, ensuring strong customer retention regardless of economic conditions. This value proposition enables Dollarama to deliver steady growth. Moreover, Dollarama’s expanding network of stores plays a key role in driving customer traffic, bolstering its financial results.
Dollarama’s strong financial performance has translated into solid capital gains for its shareholders. The stock has surged 26.3% year to date. Moreover, in the last five years, Dollarama stock has delivered a staggering 266.4% return, reflecting a compound annual growth rate (CAGR) of 29.6%. Besides capital appreciation, Dollarama has enhanced its shareholder value through consistent dividend growth. It has raised its dividend 14 times since 2011.
Looking forward, the retailer’s value pricing strategy and a broad assortment of products will continue to drive traffic. Moreover, its significant presence across Canada and expanding footprint, direct product sourcing, and cost-saving strategies will continue to boost its financials and support higher dividend payouts.
In short, Dollarama is a top stock to buy now for stability, growth, and income.
Aritzia stock
Aritzia (TSX:ATZ) is another top growth stock to buy now for solid long-term gains. While the U.S. administration’s tariff uncertainties have weighed on the stock and raised cost concerns, Aritzia’s solid business momentum has led to a significant recovery in its share price.
Its recent quarterly financials reflect the strength of its business and growing demand for the Aritzia brand. Aritzia reported a 38% increase in net revenue for the fourth quarter, along with a 26% rise in comparable sales. These figures were driven by its well-curated product lineup, effective marketing efforts, and optimized inventory management. The e-commerce operations also continue to show resilience and growth, while its physical retail presence is steadily expanding through new boutique openings.
Notably, since fiscal 2020, Aritzia has delivered a CAGR of 23% in revenue and 19% in adjusted net income.
Looking ahead, Aritzia’s top line will be supported by its solid mix of fashion brands, broad product assortment, and frequent seasonal refreshes. Moreover, its investments in marketing, improving supply chain efficiency, and opening new boutiques will help sustain momentum. The retailer plans to significantly expand its geographical footprint in the United States. The move is expected to enhance its growth and increase brand visibility.
Overall, its solid financials will give a significant boost to its share price, which has increased by about 97% over the past year.
