A $5,000 investment won’t fund retirement tomorrow. Left invested for 20 years at an average 7% annual return, however, it could grow to roughly $19,300 without another contribution. Suddenly, today’s “nice little investment” has developed ambitions.
The temptation is to scatter that money across every exciting ticker on the TSX. That creates plenty of positions to monitor, yet very little exposure to each winner. Two complementary companies can provide a cleaner starting point, particularly when one offers resilience and the other supplies greater growth potential.
Share price alone doesn’t determine whether a stock is affordable. Investors buying stocks in Canada should examine earnings growth, competitive advantages, valuation, and reasons results could improve now. Holding the shares inside a Tax-Free Savings Account (TFSA) could also shelter future gains, provided the investor has enough available contribution room.
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DOL
Dollarama (TSX:DOL) supplies the steadier half of this portfolio. The company sells inexpensive household products, food, seasonal merchandise, and other everyday items across Canada. It also owns Australia’s The Reject Shop and holds a controlling interest in Latin American retailer Dollarcity.
That international expansion gives Dollarama stock more room to grow after years of dominating the Canadian discount aisle. First-quarter sales increased 21.4% to $1.9 billion, helped by 5.6% comparable-store sales growth in Canada and a $192.8 million contribution from 410 Australian stores.
Diluted earnings per share (EPS) increased 13.3% to $1.11, even though the Australian operation remains early in its transformation. Dollarama is gradually introducing its store layout and imported products there, potentially applying a business model that has already worked rather well in Canada.
Quality has a price. At the recent $184.89 share price, Dollarama stock trades near 38 times trailing earnings. Slower consumer spending, weaker margins, or a messy Australian expansion could punish that premium valuation. Gradual purchases, therefore, make more sense than charging toward the checkout with the entire portfolio.
MDA
MDA Space (TSX:MDA) provides the higher-growth half. The Canadian company builds satellites, antennas, Earth-observation technology, and space robotics, including Canadarm3. Demand is rising as governments and businesses spend more on defence, communications, surveillance, and satellite constellations.
First-quarter revenue increased 32% to $464 million, while MDA stock finished the period with a $3.7 billion backlog. A new $688 million Canadian Space Agency satellite contract should add further work, while proposed acquisitions would expand MDA stock into American spacecraft manufacturing and artificial intelligence (AI)-powered Earth-observation services.
The shares recently traded at $43.40, approximately 36% below their 52-week high. Yet MDA also expects neutral-to-negative free cash flow in 2026 as it invests heavily, while its acquisitions introduce debt, regulatory, and integration risk.
Bottom line
Using full shares, an investor could purchase 13 Dollarama shares and 58 MDA shares. That invests $4,982.83 and leaves $17.17 for a future contribution, assuming no trading commissions.
Now, these two stocks don’t create a fully diversified portfolio, so these companies should complement broader ETF or sector holdings. Yet Dollarama’s repeat-purchase business and MDA’s expanding space pipeline offer two very different paths to growth. Given enough patience, today’s $5,000 could become the foundation of something considerably larger.
