While it’s easy to spread your Tax-Free Savings Account (TFSA) investments too thin trying to capture gains from every market sector, there’s a better way to go about it. What if just one Canadian stock, with a long history of strong growth, a rock-solid business model, and solid future growth fundamentals, were enough to power your TFSA into seven figures?
Dollarama (TSX: DOL) has quietly done just that. It may not be one of the most popular stocks on the Toronto Stock Exchange, but its performance speaks louder than any trend. Positive double-digit returns in 14 of the last 15 years and a business model that continues to expand in new regions, even amid macroeconomic uncertainties, make it a serious long-term buy-and-hold stock, especially for TFSA investors who want to avoid taking unnecessary risks.
In this article, I’ll talk about why Dollarama might just be the only top stock for TFSA you’ll need in your portfolio.
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Why Dollarama could be your TFSA’s long-term winner
To put it simply, Dollarama’s business is built on one simple promise — value pricing. As Canada’s leading discount retailer, it operates over 1,600 stores nationwide and recently expanded its reach to seven countries through its subsidiaries. With its latest move into Australia via the acquisition of The Reject Shop, the Canadian discount retailer has taken its proven model global.
This TFSA-friendly stock currently trades at $180.30 per share, giving the company a market cap of $49.5 billion and a small but consistent annualized dividend yield of around 0.23%. While that dividend might not seem impressive, Dollarama’s strength mainly lies in its consistent share price appreciation. Over the last year alone, the stock has surged nearly 25%, extending its five-year gain to more than 280%.
Impressive financial growth trend shows the momentum
In the second quarter of its fiscal 2026 (three months ended in July), the retailer reported a 10.3% YoY (year-over-year) increase in its sales to $1.72 billion. This top-line growth is primarily driven by its robust same-store sales growth in Canada and early contributions from its new Australian business. Notably, its comparable store sales in Canada rose 4.9% YoY, with the help of increased demand for consumables.
As a result, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed over 12% YoY to $588.5 million. Its strengthening profitability clearly shows how well Dollarama manages costs even as it expands its store network and absorbs the short-term impact of new acquisitions.
Growth-oriented expansion strategy
Dollarama’s recent acquisition of The Reject Shop marks its first entry into the Australian market, adding nearly 400 stores and opening the door to one of the world’s most attractive discount retail spaces. Meanwhile, its Latin American partner Dollarcity is expanding fast, as it recently opened its first store in Mexico and reached 658 stores across five countries.
With the help of this expansion strategy, Dollarama’s efficient sourcing model, fixed-price structure, and disciplined cost control are now being replicated in new markets where consumers are just as value-focused as Canadians. And that seems to be a great formula for sustainable global growth.
Why it fits perfectly into a TFSA strategy
For TFSA investors, long-term consistency and tax-free compounding are two main goals. And Dollarama’s combination of stability, expansion prospects, and proven stock performance makes it the top stock for TFSA investors who want long-term, low-stress returns on their hard-earned money.
