Rising tensions in the US–Israel–Iran conflict have disrupted the flow of oil and natural gas through the Strait of Hormuz, a transit route that carries nearly 20% of the world’s petroleum supply. This disruption has pushed energy prices higher, increasing the risk of inflation and potentially prompting central banks to delay or slow the pace of interest rate cuts. As a result, investor sentiment has weakened, leading to heightened volatility in equity markets.
However, long-term investors should avoid getting caught up in short-term market fluctuations and instead focus on fundamentally strong companies with durable business models. Against this backdrop, here are three Canadian stocks I believe are well-positioned to deliver solid returns over the next five years.
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Dollarama
Dollarama (TSX:DOL) stands out as a compelling long-term investment. Its efficient direct-sourcing model and well-optimized logistics network help keep costs low, allowing the company to offer a wide range of products at attractive price points. As a result, Dollarama consistently delivers solid same-store sales, even during periods of economic uncertainty.
The discount retailer also has significant expansion opportunities ahead. It plans to grow its Canadian store network from 1,684 locations to 2,200 by the end of fiscal 2034, while also increasing its Australian footprint from 401 to 700 stores. In addition, Dollarama is poised to benefit from its 60.1% stake in Dollarcity, which operates 684 stores across five Latin American countries. With ambitious expansion plans, Dollarcity aims to grow its footprint to 1,050 stores by fiscal 2031. Dollarama also has the option to raise its ownership in Dollarcity to 70% by exercising its option in the near term.
Given these strong growth drivers, Dollarama appears well-positioned to deliver healthy financial performance in the coming years, which could, in turn, support sustained stock price appreciation.
Fortis
Fortis (TSX:FTS) is an attractive option for long-term investors, supported by its highly regulated asset base and strong visibility into future growth. With 100% of its assets regulated and about 95% of its operations focused on low-risk transmission and distribution, the company’s financial performance remains largely insulated from broader market volatility.
Backed by this stable business model, Fortis has delivered an impressive average total shareholder return of 10.3% over the past 20 years. It has also increased its dividend for 52 consecutive years and currently offers a solid forward yield of 3.4%.
Looking ahead, energy demand across North America is rising due to economic expansion, increased investment in AI-ready data centres, and the ongoing electrification of transportation. To capitalize on these trends, Fortis plans to invest $28.8 billion through the end of the decade. These investments can grow the utility’s rate base at an annualized rate of 7% through 2030, supporting steady earnings growth.
Given these favourable growth prospects, management expects to increase dividends by 4–6% annually through 2030, making Fortis a compelling addition to a long-term portfolio, even amid an uncertain economic environment.
Waste Connections
Waste Connections (TSX:WCN) is a leading waste management company that collects, transports, and disposes of non-hazardous solid waste. It primarily operates in secondary and exclusive markets, where competition is limited, allowing the company to maintain higher margins. In addition, WCN has consistently expanded its footprint through both organic growth and strategic acquisitions, driving both its financial performance and share price higher. Over the past decade, the company has delivered an impressive average total shareholder return of 15.9%.
Looking ahead, supported by a strong balance sheet and robust cash flows, WCN plans to continue its active acquisition strategy. Its pipeline remains solid, comprising several private companies that could collectively generate approximately $5 billion in annual revenue. The waste solutions provider has also recently brought five renewable natural gas (RNG) facilities into service and expects to add more by the end of the year. Additionally, it plans to launch a new state-of-the-art recycling facility next year, further strengthening its operational capabilities.
Alongside these expansion initiatives, management continues to invest in technological advancements to enhance efficiency and productivity. The company also places strong emphasis on employee engagement and safety. Together, these efforts could support sustained financial growth in the coming years, positioning WCN to deliver continued long-term stock price appreciation.
