2 Canadian Stocks That Could Turn $20,000 Into $200,000

These two are some of the safest ways to increase your funds from $20,000 to $200,000.

Turning a $20,000 investment into $200,000 might sound like a dream, but in the world of long-term investing, it’s not entirely out of reach. It doesn’t happen overnight, and it rarely happens without bumps along the way. But with the right companies – those ones that grow steadily, expand internationally, and manage their businesses with consistency – it’s possible. Two Canadian stocks that fit that bill today are Dollarama (TSX: DOL) and GFL Environmental (TSX: GFL).

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Dollarama

Let’s start with Dollarama, the discount retailer that’s not only dominating aisles in Canada. In July 2025, Dollarama completed its acquisition of Australia’s largest discount chain, The Reject Shop. With over 390 locations across Australia now under its umbrella, Dollarama is aiming to repeat its Canadian success overseas. This isn’t just growth for growth’s sake. Dollarama brings with it a proven supply chain model, tight cost controls, and a value-first offering that resonates with consumers everywhere.

In its most recent earnings, Dollarama posted an 8.2% increase in sales, hitting $1.5 billion in the first quarter of fiscal 2026. Comparable store sales were up 4.9%, showing strength in core operations, not just expansion. And profitability? Net income surged nearly 27% year over year, reaching $273.8 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) margins climbed to 32.6%, thanks in part to operational efficiency and a one-time gain related to its investment in Central America.

Now, none of this guarantees a ten-bagger return, of course. The challenge with a Canadian stock like Dollarama is valuation. It’s already well-loved by investors, so shares aren’t exactly cheap. But even high-quality stocks can deliver huge long-term gains when they continue to outperform expectations. With the Australian expansion just beginning and Dollarcity’s Latin American growth continuing, Dollarama could see meaningful global scale. That’s what could unlock serious upside over the next decade.

GFL

Next up is GFL Environmental, a Canadian stock that may not sound as exciting as a retailer expanding down under, but its numbers are quietly turning heads. GFL is a giant in North American environmental services. Think waste collection, recycling, composting, and more. And unlike a lot of industrial stocks, GFL has managed to rapidly grow both sales and profits.

In the second quarter of 2025, revenue grew to $1.7 billion, up 9.5% from the year before. Adjusted EBITDA hit $515.1 million, marking a 14.6% increase. Margins rose, cash flow improved, and GFL even raised its full-year guidance. It now expects up to $2 billion in adjusted EBITDA for 2025 and forecasts $750 million in free cash flow. Those aren’t just big numbers; these show a business with scale and pricing power, something that matters even more during economic uncertainty.

The tricky part with GFL is the debt. Its debt-to-equity ratio sits north of 90%, and interest costs aren’t small. Still, the Canadian stock is working to bring net leverage down to the low 3 times range by the end of 2025. If it can manage that while maintaining double-digit EBITDA growth and strong cash generation, GFL could be a very different company in five years.

Foolish takeaway

Let’s not sugarcoat it, though. Both stocks carry risks. Dollarama faces pressure if international expansion flops or competition heats up domestically. GFL, meanwhile, has to balance growth with managing its hefty balance sheet. A downturn in commodity prices or waste volumes could slow its momentum.

But here’s the flip side. Both Canadian stocks have characteristics that long-term investors look for: recurring revenue, expanding markets, and solid execution. Dollarama is quietly becoming a global discount retail power. GFL is turning garbage into cash flow. Neither are flashy tech stocks, but both offer the kind of boring consistency that can quietly compound wealth over time.

If you’re thinking of putting $20,000 to work, splitting it between these two names might not lead to fireworks in the short run. But fast-forward a decade, and there’s a chance you’ll look back at today’s price as a bargain. Ten-bagger potential? Only time will tell. But the building blocks are certainly in place.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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