You hit 40 and the money questions start talking back. Kids cost more, time moves faster, and retirement stops feeling like a far-off rumour. Averages do not set your fate, but they do give you a gut-check and a benchmark. The CRA’s Tax-Free Savings Account (TFSA) statistics for the 2023 contribution year put the average TFSA fair market value for Canadians aged 40 to 44 at about $20,670, with average unused TFSA room near $62,618.
Meanwhile, the average Registered Retirement Savings Plan (RRSP) balance for Canadians aged 35 to 44 is at about $49,014. That gap matters, as the median reflects “most people,” while the average gets pulled up by super-savers. So, how can you get up to those super-saver levels?
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DOL
Dollarama (TSX:DOL) fits that investment profile better than most people expect. It sells low-priced essentials and small “treat yourself” items, and that mix tends to hold up when budgets feel tight. When shoppers trade down, traffic often increases. It also benefits from scale, as it can spread costs across a big store base and keep prices sharp.
It also keeps a simple growth lever running in the background: it opens stores. More stores mean more convenience, more transactions, and more data on what customers buy. It leans into consumables, which pulls customers back frequently. That repeat behaviour makes revenue steadier than at retailers that depend on big-ticket splurges.
The market has rewarded that steadiness. Dollarama shows a roughly 43% gain over the past year. That run tells you investors still pay up for consistent execution, especially when the economy feels choppy and consumers chase value. It also raises expectations, which matters for anyone buying today.
Earnings support
Those expectations met strong numbers in the latest quarter. In fiscal 2026’s third quarter, Dollarama reported sales of $1.9 billion, up 22.2% year over year, and net earnings of $321.7 million. Diluted earnings per share (EPS) came in at $1.17 versus $0.98 the year before. Comparable store sales in Canada rose 6%, driven by more transactions and a bigger average basket. That combination signals demand, not just store growth.
It also leaned hard into capital returns. Dollarama repurchased about 2.6 million shares for roughly $484.6 million during the quarter. It also reported that management lifted its annual comparable sales forecast, which suggests momentum can continue. Beyond Canada, it owns a stake in Dollarcity and it now runs an Australian retailer The Reject Shop, which could add runway if execution stays sharp, but it can also add costs and distractions.
Therefore, valuation still matters, especially inside a TFSA where you want long-term winners but you also want to avoid paying any price. Right now, it holds a $54.7 billion market cap, while trading at 42.6 times earnings. That multiple assumes continued delivery. If inflation cools and shoppers drift back to pricier retailers, growth could cool. If competition turns into a price fight, margins could tighten. And if international initiatives disappoint, the stock could re-rate lower fast.
Bottom line
For a 40-year-old trying to build a bigger TFSA and RRSP balance, Dollarama offers a clean, understandable path. It can perform across cycles, it can add stores, and it can support per-share growth with buybacks. It also carries real risks, led by valuation and the need to execute abroad while defending margins at home. Dollarama gives you a proven compounding business, as long as you keep your time horizon long and your contributions steady.
