Even as macroeconomic uncertainties, global trade disruptions, and geopolitical conflicts continue to cast a shadow over markets, the S&P/TSX Composite Index is pushing to new highs this year. While many investors are understandably cautious, that doesn’t mean they need to sit on the sidelines.
In fact, volatile times like these act as a good reminder of why portfolio stability is so important. If I had to choose just one stock to buy and hold through all kinds of market conditions, it would be a company that has already proven its ability to grow in both up and down cycles.
That is exactly why I would choose Dollarama (TSX:DOL). While it may not offer a high dividend yield, here are three key reasons why it’s my top long-term pick for long-term holding.
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Reliability that’s hard to beat
The first key reason I’d pick Dollarama for the long-term is its rock-solid reliability. Rather than chasing trends, this company keeps it straightforward, selling a broad mix of essentials at fixed price points with value in mind. With over 1,600 locations across Canada and a strong presence in Latin America through Dollarcity, Dollarama continues to serve customers in both small towns and major cities.
Even during uncertain economic conditions, the company consistently delivers. In the first quarter of its fiscal 2026 (ended in April), it reported a 27% jump in its net profit, reflecting a big improvement over the same period last year. This solid performance, especially when many other retailers are struggling with weak consumer spending, gives investors like me peace of mind.
Steady and consistent growth
Another key reason worth highlighting is its reliable track record of growth. Dollarama’s top-line numbers continue to grow at a healthy pace. The company’s first quarter sales rose 8.2% YoY (year-over-year) with the help of 5% comparable store sales growth.
Similarly, its quarterly gross margin also moved up to 44.2% due mainly to a decline in its logistics costs. Meanwhile, Dollarama’s EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 18.8% YoY, and the EBITDA margin climbed to 32.6%.
The company added 22 new stores in the quarter, further extending its presence. Interestingly, in fiscal 2026, it expects to open 70 to 80 new stores as it continues to focus on the expansion it’s known for.
A defensive business that keeps delivering
Another top reason Dollarama remains my top stock to buy now is its defensive business model that holds up in good times and bad.
While many retailers feel the pinch when consumer spending softens, Dollarama usually sees the opposite. With more people watching their budgets, demand for its low-priced and affordable items often grows. That’s exactly what we’ve seen recently, with strong demand for Dollarama’s consumables and seasonal products lifting its sales.
In addition, even though DOL stock doesn’t offer a big dividend, it still pays a quarterly one. At a stock price of $193.09 per share, it has a market cap of $53.5 billion and offers an annualized dividend yield of about 0.22%. While it’s not meant for those chasing income, the payout is a solid bonus on top of its growth potential.
