If you’re hunting for Canadian stocks that could turn a small investment into big wealth, what you’re really looking for are future compounders. These are Canadian stocks that can consistently grow earnings, reinvest profits wisely, and ride big structural trends. It’s less about chasing hype and more about spotting business models that can scale and survive. Today, let’s consider three Canadian stocks that could create massive wealth even from a small investment.
NFI
First up, we have NFI Group (TSX:NFI), a Canadian-based manufacturer of transit buses and coaches, operating through brands like New Flyer, Alexander Dennis, MCI and NFI Parts. It also boasts zero-emission transit buses, offering investors an interesting avenue if wanting to get into the global push for decarbonization.
However, big wealth creation requires more than a promising trend. Transit buses are a capital-intensive business, exposed to supply-chain constraints, tooling and facility costs, regulatory changes, and cyclical demand. The growth story depends on large orders converting to manufacturing profitably. Backlog may be strong, but actual earnings/winning margins matter more.
Yet if the price is right, NFI stock could still be a solid Canadian stock to buy. At writing, shares trade at about 11 times earnings. However, that comes with a high debt-to-equity ratio and shares down 18%. So, if you’re a patient investor, this could be a smaller investment that could create a larger gain over time.
TD
A perhaps safer but less cheap Canadian stock to consider then is Toronto-Dominion Bank (TSX:TD), with the makings of a long-term wealth builder. It’s not a speculative rocket ship like a small-cap tech company, but it’s a compounding machine that’s quietly created millionaires for decades through dividends, buybacks, and steady growth.
TD is one of the most reliable big banks in North America, with operations stretching from Canada to the eastern United States. Its balance sheet is strong, its business mix is diverse, and its track record of dividend growth is one of the best on the TSX. Over the past 20 years, TD’s total return (including dividends) has compounded at roughly 9% annually. Today, it trades at just 9.7 times earnings, with a solid 3.75% dividend yield!
The short-term story has been bumpy. Regulatory issues in the U.S. have weighed on sentiment this year, particularly around anti-money-laundering reviews. The bank’s attempt to acquire First Horizon fell apart in 2023, and investors have been cautious about TD’s American ambitions ever since. Yet TD has been through every financial cycle of the past century and always came out stronger. For a long-term investor who reinvests dividends, that’s a double engine of compounding at a stellar price.
T
Finally, we have TELUS (TSX:T), a Canadian stock that again won’t explode overnight, but can transform a small investment into massive wealth when starting early and investing often. It’s a blue-chip telecom name built for stability and slow, steady compounding, not short bursts of growth. TELUS is one of Canada’s “Big Three” telecom giants, providing wireless, internet, and digital services to millions of Canadians.
Over the past two decades, TELUs has evolved from a traditional phone company into a digital services leader with major growth engines. That shift is important because it gives the Canadian stock exposure to faster-growing, tech-driven revenue streams while keeping its core cash cow business intact. TELUS is also investing heavily in its fibre-optic network and 5G infrastructure, spending billions to stay ahead of demand for data.
Of course, it’s not risk-free. Debt levels are elevated after years of aggressive expansion, and its TELUS International division has struggled with weaker demand from tech clients. But right now, it trades at 19 times forward earnings, offering a massive 7.88% dividend yield to reinvest.
Bottom line
For investors who want to build lasting, low-stress wealth through compounding income, these Canadian stocks are exactly the kinds to buy, hold, and forget. Each won’t make headlines, but it could quietly make you rich if you have the patience to buy and reinvest.
