The Only TSX60 Stock I’d Buy If I Had to Hold for Life

With double-digit sales growth, new international pillars, and elite margins, is Dollarama the “rich” TSX60 stock you’ll wish you’d bought and held for years?

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 19, 2025 4:40 pm EDT

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Key Points

Dollarama keeps growing, with Q2 sales up 10% and plans for 70–80 new Canadian stores plus expansion via Dollarcity and The Reject Shop.
Profitability is strong with 34% EBITDA margin, solid cash flow, and low debt, supporting buybacks, dividends, and continued store growth.
The stock is up about 40% and trades at ~41x earnings, but it’s still seen as a durable long-term buy; consider dollar-cost averaging.

There are thousands of TSX stocks out there, and even when you nail it down to just the TSX60, there’s still so much to consider. So today, we’re going to skip all that and instead focus on a stock that’s been around for years. One stock that remains so strong no matter the economic environment, and what’s more, continues to grow over and over again. That stock, is Dollarama (TSX:DOL).

Women's fashion boutique Aritzia is a top stock to buy in September 2022. — Source: Getty Images

Proven growth, with global expansion

Dollarama stock belongs on pretty much any buy list. That’s because this TSX stock has shown again and again that it can grow sales consistently along with earnings in Canada. Even while building international legs. This was demonstrated yet again during its second quarter of 2026.

Sales grew 10.3% in the quarter with comparable sales up 4.9%, driven by even more shoppers with slightly bigger baskets. And this is while it’s still executing well at home, targeting 70 to 80 new Canadian stores this year and expanding abroad.

Beyond borders

That expansion has included not one, but two more international arms. Its Latin America store Dollarcity saw 16.4% in sales growth, opening its first store in Mexico. This market now provides massive long-term opportunities.

But now investors have even more reason to be excited. The TSX stock recently acquired The Reject Shop from Australia, adding 395 stores marking a second international pillar. The integration is modestly margin-dilutive for now, but the new growth opportunity and scale is massive. Not just now, but for decades to come.

Staying strong

Despite all this spending on growth, the TSX stock remains fundamentally strong. Dollarama stock remains one of the most profitable retailers in Canada. In the second quarter, earnings before interest, taxes, depreciation and amortization (EBITDA) expanded to 34.1%, with its operating margin at 28%. It’s simply one many global peers cannot match.

Furthermore, cash flow remained strong, allowing it to buy back 932,000 shares in the second quarter. Yet with debt low, it has room to buy more shares, and increase dividends and stores. And through all this? Dollarama stock thrives in any economy. Value retailers hold up in downturns, with consumers merely buying more in better economic environments. In fact, shares have surged about 40% in the last year. So despite trading at 41 times earnings, DOL stock remains a top long-term buy.

Bottom line

Dollarama stock might be a “rich” buy, but it’s so high quality and defensive through global expansion that years from now it won’t feel that way. For long-term investors, it can serve as a core TSX stock alongside other top investments.

In fact, an excellent option today would be dollar-cost averaging, buying the stock at a regular clip. This way, over time, you might pay more, other times you’ll pay less, with the price “averaging” out. All in all, if you’re looking for a TSX60 stock you can pick up now and hold forever, Dollarama stock is simply an easy option on the TSX today that anyone should consider.