Last week, Canadian equities delivered a mixed performance. The S&P/TSX Composite Index touched a new high but still ended the week down 0.2%, as a lower-than-expected unemployment rate made investors skeptical of future interest rate cuts. Even with the pullback, the index remains up more than 27% for the year. Despite the uncertain outlook, I am bullish on the following two stocks, given their strong underlying businesses and robust growth prospects.
Dollarama
Dollarama (TSX:DOL) remains one of my favourite stocks, thanks to the essential nature of its business, consistent financial performance, and strong long-term growth prospects. The Montreal-based retailer offers a broad range of consumer goods at attractive price points through its efficient direct sourcing model and optimized logistics network. This structure allows Dollarama to draw steady customer traffic regardless of broader economic conditions.
The company has expanded significantly over the years, growing its Canadian store base from 652 in fiscal 2011 to 1,665 today. In July, it also acquired The Reject Shop, which operates 395 stores in Australia. Combined with solid same-store sales growth, these expansions have strengthened Dollarama’s financial results and supported a sustained rise in its share price. Over the past decade, the stock has delivered an impressive 598% return at an annualized gain of 21.4%.
Looking ahead, Dollarama plans to further grow its store network to 2,100 locations in Canada and 700 in Australia by fiscal 2034. Its rapid sales ramp-up, shorter payback periods, and modest maintenance capital expenditures contribute to low capital intensity and attractive returns on investment—factors that should continue to support top- and bottom-line growth.
The company also owns a 60.1% stake in Dollarcity, which operates 658 stores across five Latin American countries. Dollarcity aims to expand its footprint to 1,050 stores by fiscal 2031, while Dollarama holds the option to increase its ownership to 70% by the end of 2027. As Dollarcity continues to scale, its contribution to Dollarama’s net income is likely to grow meaningfully.
Dollarama has raised its dividend 14 times since 2011 and currently offers a yield of 0.21%. Considering its strong execution, expansion plans, and a solid business model, I believe Dollarama remains an excellent long-term buy.
Shopify
My second pick is Shopify (TSX:SHOP), which provides a comprehensive suite of products and services across more than 175 countries, enabling businesses to start, operate, and scale efficiently. Thanks to strong financial performance and the growing adoption of omnichannel selling, the company has generated an exceptional return of over 6,045% in the past decade, representing an annualized gain of 50.93%.
Shopify continues to expand its capabilities by launching innovative offerings, including a growing suite of artificial intelligence (AI)-powered tools. It has also partnered with leading AI companies to develop advanced solutions tailored to evolving merchant needs. Beyond its core e-commerce platform, Shopify is broadening its reach into the business-to-business (B2B) space, strengthening its offline retail capabilities, and expanding its payments ecosystem into new international markets — all of which enhance its long-term growth potential.
The company has also formed strategic partnerships with prominent logistics and fulfillment providers, improving delivery speeds and offering merchants more flexible, reliable shipping options. At the same time, Shopify is focused on improving operational efficiency through automation and deeper AI integration, accelerating its path toward sustainable, profitable growth.
Given these initiatives and its strong competitive position, I believe Shopify is well-positioned to deliver solid returns in the years ahead.
