Stocks have long been among the top investments for building lasting wealth. The key is to select stocks with fundamentally strong businesses and the ability to deliver profitable growth. By investing in such companies and holding them through market cycles, investors benefit from compounding returns and long-term value creation.
Against this background, here are three TSX stocks to build lasting wealth.
TSX stock #1: 5N Plus
5N Plus (TSX:VNP) is a compelling small-cap Canadian stock poised to deliver significant long-term returns. The company produces high-performance materials and specialty semiconductors. Its products are used as components in high-growth end markets, including renewable energy, space technology, advanced electronics, pharmaceuticals, and industrial manufacturing.
As global investment in clean power and next-generation tech accelerates, the need for the advanced materials 5N Plus delivers will rise, giving the business a solid runway for growth.
Its Specialty Semiconductors business is driving strong momentum, led by strong demand from the space solar power and terrestrial renewable energy sectors. The company is also expanding solar cell production capacity to capitalize on demand from commercial, civil, and defence markets.
5N Plus is also a leading provider of high-purity materials outside China, positioning it well to benefit from rising trade complexity as countries look to diversify their sourcing options.
In summary, strong demand and exposure to high-growth sectors position 5N Plus to deliver above-average returns in the long term.
TSX stock #2: Aritzia
Aritzia (TSX:ATZ) is one of the top TSX stocks for creating significant wealth. The Canadian fashion retailer has delivered substantial returns, rising 357% over the past five years, reflecting a compound annual growth rate (CAGR) of over 35%. Despite this notable rally, Aritzia still has significant upside potential as it continues to expand its brand visibility and opens new boutiques.
Aritzia’s exclusive brands and ability to quickly adapt to new trends have earned it a devoted customer base. At the same time, its investment in e-commerce and new boutiques has helped fuel a remarkable expansion. For instance, Aritzia’s revenue grew at a CAGR of 23% since fiscal 2020. At the same time, its earnings grew at a 19% CAGR.
Looking ahead, Aritzia plans to aggressively build its U.S. footprint, targeting up to 10 new store openings each year through fiscal 2027. Moreover, it is strengthening its e-commerce platform to accelerate growth. Aritzia’s management expects the company’s top line to grow by 15–17% annually through fiscal 2027. The double-digit top-line growth, tighter costs, and reduced markdowns will cushion its bottom line and drive its stock price higher.
TSX stock #3: Dollarama
Dollarama (TSX:DOL) is one of the top Canadian stocks to buy and hold for building lasting wealth. The discount retailer has consistently delivered solid capital gains, outperforming the broader market and delivering exceptional long-term returns. Over the last five years, Dollarama stock has compounded by 30.5% annually, rewarding investors with substantial gains.
Further, Dollarama has steadily raised its dividend, enhancing shareholders’ total returns while maintaining a resilient business model. Its focus on low, fixed-price essentials continues to drive traffic regardless of market conditions. In addition, Dollarama’s expanding store network in Canada and abroad, and partnership with third-party delivery platforms to reach more shoppers augur well for growth.
Dollarama’s strong supplier relationships and mix of private-label and branded products help protect margins and strengthen its competitive position. Its recent move into Australia through the acquisition of The Reject Shop adds further growth potential. For long-term investors seeking growth, income, and stability, Dollarama remains a compelling choice.
