Investing in TSX stocks with the ability to deliver above-average returns can help build wealth over time and retire rich. However, when investing for long-term financial goals, consider diversifying your portfolio to add stability and spread risk.
Against this background, here are three TSX stocks that could deliver above-average returns and support you to retire rich.
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Dollarama stock
Dollarama (TSX:DOL) is a top TSX stock for building wealth for retirement. This Canadian dollar store retail chain consistently performs well in all market conditions, thanks to its value-focused model, and generates above-average returns.
By offering everyday essentials and seasonal goods at low fixed prices, Dollarama consistently attracts strong consumer demand. Moreover, its focus on geographic expansion boosts sales and market presence.
In the first quarter of fiscal 2026, Dollarama reported an 8.2% year-over-year increase in sales to $1.5 billion, with same-store sales rising 4.9%. This growth was driven by more customer visits and higher average transaction sizes. The stock has already surged 37.1% this year and has delivered nearly 315% in capital gains over the past five years by growing at an above-average compound annual growth rate (CAGR) of 32.9%
Additionally, Dollarama has been consistently increasing its dividend since 2011, returning higher cash to its shareholders.
Its value pricing strategy, wide product range, partnerships with third-party online delivery platforms, strong supply chain, and expanding geographical footprint will likely drive its earnings, supporting its share price and future dividend payments.
5N Plus stock
5N Plus (TSX:VNP) is a small-cap stock trading under $10. It manufactures specialty semiconductors and performance materials. These advanced components are vital to booming sectors such as renewable energy and space solar technology, positioning the company to deliver significant long-term returns.
Strong demand and its focus on improving margins are enabling 5N Plus to scale profitably. Over the past five years, the stock has delivered a 486.9% return, compounding annually at 42.41%. Its bismuth-based products are gaining traction, and enhanced manufacturing capabilities combined with a robust global supply chain strengthen its outlook.
Furthermore, as the demand for ultra-high-purity materials continues to increase, particularly from non-Chinese sources, 5N Plus is emerging as a crucial supplier. Its strong customer relationships, growing global presence, and leadership in niche markets make it a compelling bet for investors seeking long-term growth.
Cameco
Investors planning to retire rich could consider adding Cameco (TSX:CCO) to their long-term portfolios. This leading company in the nuclear energy space provides fuel, technology, and services spanning the full reactor lifecycle. Moreover, its investment in Westinghouse Electric deepens its control over the entire nuclear value chain, positioning it well to deliver reliable, carbon-free energy.
With global demand for electricity surging, driven by AI-driven data centers, electrification, and decarbonization efforts, nuclear power is witnessing solid demand, and Cameco is well-positioned to capitalize on it. Thanks to solid secular demand trends, Cameco stock has increased at a CAGR of 47.5% over the past five years, delivering a return of approximately 600%.
Looking ahead, its efficient production, strong market presence, and long-term supply contracts offer stability and growth potential. Cameco’s expansion plans and exploration projects add further upside. Overall, Cameco’s long-term outlook remains solid, making it an attractive investment for investors aiming to retire rich.
