For a stock to double in value in 10 years, it needs to generate a compound annual growth rate (CAGR) of approximately 7.2%. While that target may appear achievable, especially when compared with the outsized gains often seen in high-growth stocks, delivering such returns consistently over 10 years is far from easy.
It demands companies with solid fundamentals, durable competitive advantages, expanding addressable markets, and profitable growth to consistently deliver healthy returns.
Against this background, here are three Canadian stocks with the financial strength and runway required to 2 times your money by 2036.
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Canadian stock #1: Loblaw
Loblaw (TSX:L) is one of the top Canadian defensive stocks. However, its appeal extends beyond stability. Despite its resilient business model, Loblaw stock has the potential to double in value over the next decade, driven by consistent earnings growth and expansion opportunities.
As the country’s largest grocery and pharmacy retailer, it benefits from steady demand for essential products, allowing it to generate resilient revenue and earnings across economic cycles.
Notably, Loblaw stock has grown at a CAGR of more than 17% over the past decade. While past performance does not guarantee future returns, Loblaw’s underlying fundamentals suggest that its growth momentum is likely to continue.
Loblaw continues to expand its store network, which will support its top-line growth rate. At the same time, its discount banners are benefiting from consumers’ ongoing preference for value-oriented shopping. Loblaw’s digital business also presents an attractive growth avenue, with rising e-commerce sales supported by integrated third-party delivery partnerships.
In addition, Loblaw’s investment in supply chain automation and its strength in private-label products are likely to support margins.
With a defensive business model and consistent earnings growth, Loblaw is well-positioned to deliver solid shareholder returns over the next decade.
Canadian stock #2: Hydro One
Hydro One (TSX:H) is a defensive investment with the potential to deliver notable long-term returns, including the possibility of doubling in value over the next decade. The company operates exclusively in the regulated electricity transmission and distribution business, avoiding the risks associated with power generation. This stable, regulated operating model provides predictable cash flows and consistent earnings, supporting both dividend growth and share price appreciation.
Since 2016, Hydro One has raised its dividend at a steady mid- to high-single-digit rate. Moreover, its stock has grown at a CAGR of more than 16% over the past five years.
With a growing rate base, a healthy balance sheet, strong generation, grid modernization, and growing electricity demand, Hydro One remains well-positioned to deliver reliable capital appreciation alongside increasing dividend income.
Canadian stock #3: Aritzia
Aritzia (TSX:ATZ) is another compelling TSX stock with the potential to double in value over the next decade. Its stock has consistently outperformed the broader market, supported by strong business momentum and a resilient growth strategy. Steady consumer demand, an expanding boutique network, and robust traffic across both its physical stores and digital channels are expected to continue driving its performance.
The retailer is also well-positioned to benefit from higher full-price sales, disciplined inventory management, and effective cost controls, which should support continued margin expansion and earnings growth.
Aritzia has delivered solid double-digit growth in both revenue and earnings over the years. Looking ahead, sustained demand for its exclusive apparel, combined with contributions from newly opened boutiques, is expected to fuel further sales growth. At the same time, ongoing investments in its digital capabilities should strengthen customer engagement and support long-term expansion.
Overall, with solid growth prospects, Aritzia stock could easily double in 10 years.
