There’s no question that when it comes to finding the best Canadian stocks that investors can buy and hold for the long haul, Dollarama (TSX:DOL) consistently sits near the top of the list.
The company has built one of the strongest and most resilient business models in the country, delivering steady growth through every possible economic environment. Whether the economy is booming or consumers are feeling pressured, Dollarama continues to see reliable traffic as shoppers look for value and convenience.
That resilience is a massive reason why Dollarama has become one of the most consistent performers on the TSX over the last decade. In fact, in just the last 10 years, Dollarama has earned investors a total return of more than 720%. That’s a compound annual growth rate of roughly 23.5%.
The company is constantly benefiting from its massive national footprint, strong brand recognition, and a pricing model that allows it to pass through cost increases while still delivering value to customers.
At the same time, Dollarama continues to rapidly expand its store base, grow same-store sales, and improve efficiency, which has helped drive impressive earnings growth over time.
Furthermore, on top of all the growth potential it still has in Canada, Dollarama stock has also been rapidly expanding its presence internally as well, giving it a tonne of growth potential for decades to come.
Dollarama is a business built for consistent growth
One of the biggest reasons why Dollarama stock continues to outperform the rest of the market is the efficiency of its business model. The company is constantly generating tonnes of free cash flow, which it reinvests back into growth while still returning capital to shareholders.
For example, part of why it can consistently grow and grow so quickly is that opening new stores is highly economical for Dollarama. On average, a new location requires less than $1 million in upfront investment, and most stores typically achieve payback in just two years.
That efficiency has enabled Dollarama to open an average of about 66 net new stores per year over the last decade. And looking ahead, management has increased its long-term Canadian store target to 2,200 locations by 2034, up from the 1,684 stores it has in operation today. That equates to roughly 60–70 new store openings per year, which is right in line with its target.
International expansion adds more growth potential for Dollarama stock
In addition to its core Canadian business, though, Dollarama’s growing international presence has become an increasingly important part of why it’s one of the best growth stocks to buy and hold for the long haul.
Through its majority stake in Dollarcity, the company now has exposure to hundreds of stores across Latin America, including Colombia, Guatemala, El Salvador, and Peru. Furthermore, Dollarama is growing its exposure in Australia.
And in 2025, Dollarama also entered the Mexican market when it opened its first store in mid-2025. This expansion into Mexico creates a significant long-term opportunity given the size of the market and demand for affordable everyday goods in the country.
Furthermore, these international operations are already contributing to earnings, adding another layer of diversification and growth potential to the overall business.
Outlook for 2026 and beyond
Looking ahead to fiscal 2027, which begins at the start of February, the outlook remains attractive for Dollarama stock.
For example, analysts are estimating Dollarama’s revenue will jump another 12% year over year, and its normalized earnings per share are estimated to increase by over 13% next year as its margins continue to improve.
So even though Dollarama stock isn’t cheap today and trades at nearly 40 times forward earnings, it’s the long runway of rapid growth potential over the next decade and beyond that continues to make it one of the best Canadian stocks investors can own.
