Building a million-dollar retirement portfolio is a goal many investors aspire to achieve. While it may seem ambitious, it is attainable with disciplined investing and a long-term focus on high-quality growth stocks. For example, a $50,000 investment that compounds at an annualized rate of 12.8% over 25 years would grow to approximately $1 million.
With that in mind, here are three Canadian stocks I believe could deliver annualized returns exceeding 12.8% over the long term.
Image source: Getty Images
Dollarama
First on my list is Dollarama (TSX: DOL), Canada’s leading discount retailer, with 1,719 stores across Canada and 410 stores in Australia. Its efficient direct sourcing model and streamlined supply chain keep costs low, enabling the company to offer a broad selection of everyday products at attractive prices. This compelling value proposition has helped Dollarama generate resilient same-store sales and consistent financial growth across varying economic conditions.
Dollarama has also built an impressive long-term growth track record, expanding its Canadian store network from 652 locations in 2011 to 1,719 today. Supported by this steady expansion and strong execution, the stock has delivered a total return of more than 530% over the past decade, representing an annualized return of 20.3%.
Looking ahead, the company has multiple growth drivers. It plans to increase its Canadian store count to 2,200 and expand its Australian network to 700 locations by the end of fiscal 2034. Dollarama also has significant exposure to the fast-growing Latin American market through its 60.1% stake in Dollarcity, which plans to grow its store network from 752 to 1,050 locations by fiscal 2031. In addition, Dollarama has the option to increase its ownership stake in Dollarcity to 70% by the end of next year, further strengthening its exposure to the fast-growing Latin American market. Given these expansion opportunities and its resilient business model, I believe Dollarama is well-positioned to continue delivering strong earnings growth and attractive long-term shareholder returns.
Savaria
Second on my list is Savaria (TSX: SIS), a global provider of accessibility and mobility solutions for individuals with physical limitations. Supported by its extensive manufacturing footprint and well-established dealer network, the company serves customers across North America, Europe, Asia, and Australia. Strong execution and consistent financial performance have helped Savaria deliver a total shareholder return of more than 355% over the past decade, representing an impressive annualized return of 16.4%.
Looking ahead, the company’s growth prospects remain compelling. An aging global population continues to drive demand for accessibility and mobility products, creating a favourable long-term backdrop. To capitalize on this opportunity, Savaria is investing in product innovation, expanding its manufacturing capacity, improving operational efficiency, and pursuing strategic acquisitions to strengthen its competitive position. With robust cash flows and a healthy balance sheet, the company is well-positioned to pursue its acquisition strategy. Most recently, Savaria acquired Vipal S.p.A., a residential lift and elevator manufacturer based in Ferentillo, Italy, enhancing its manufacturing capabilities in Europe and broadening its product portfolio.
Supported by these growth initiatives, management expects revenue to reach $1.6 billion by 2030, representing an annualized growth rate of 12%, while maintaining an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin above 20%. Given its favourable industry tailwinds and multiple growth drivers, I believe Savaria has the potential to deliver market-beating returns over the long term.
Celestica
My final pick is Celestica (TSX: CLS), an electronic manufacturing services (EMS) provider well-positioned to benefit from the rapid expansion of the artificial intelligence (AI) market. As AI adoption accelerates across enterprises, governments, and consumers, demand for computing power continues to rise, prompting hyperscalers to invest heavily in AI infrastructure and data centres. This trend is creating significant long-term opportunities for Celestica, a leading supplier of advanced networking and hardware solutions.
Amid favourable market conditions, Celestica is focusing on developing innovative products to meet its customers’ growing needs. In addition, Celestica is investing in its manufacturing capabilities, including a new production facility in Fort Worth, Texas, to increase capacity and support future growth in revenue and earnings. Given its strong execution and exposure to one of the fastest-growing segments of the technology industry, I believe Celestica is well-positioned to deliver attractive long-term shareholder returns.
