3 Canadian Stocks That Could Turn a Small Investment Into Big Wealth

Small investments can grow huge, so here are three Canadian stocks with real compounding potential.

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 October 21, 2025 4:50 pm EDT

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Key Points

Look for businesses that grow earnings, reinvest profits wisely, and ride long-term trends to compound wealth over a decade.
NFI offers high upside from electric-bus demand but it's cyclical, capital-intensive, and carries high debt, so it's riskier.
TD is a steady long-term compounder, TELUS adds stable cash flow and high yield but has higher debt and execution risks.

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.

dividends grow over time — Source: Getty Images

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.