Enbridge (TSX: ENB) has been an excellent stock for long-term wealth creation, delivering an impressive 890% return over the past 20 years, representing an annualized return of 12.1%. The company has also paid dividends for more than 70 years and increased its payout for 31 consecutive years. Supported by long-term take-or-pay contracts and a tolling framework, Enbridge’s resilient business model has generated stable financial performance and attractive shareholder returns.
However, the stock has come under pressure in recent weeks amid reports of a major natural gas liquids leak on its Line 5 project, ongoing legal challenges, and broader financial headwinds. As a result, Enbridge has declined by approximately 13% from its 52-week high. Given these near-term uncertainties, I am more bullish on the following two Canadian stocks, which offer greater potential to deliver superior long-term returns.
Let’s take a closer look at these two Canadian stocks.
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Dollarama
Dollarama (TSX: DOL) is a leading discount retailer that has built a highly efficient direct-sourcing model, strengthening its bargaining power while eliminating intermediary costs. Its streamlined operations and optimized logistics further help control expenses, allowing the company to offer a broad range of consumer products at attractive price points. This value-oriented model has helped Dollarama maintain healthy same-store sales even amid challenging macroeconomic conditions.
The company has also significantly expanded its footprint, growing from 652 stores in 2011 to 1,719 stores by the end of the first quarter of fiscal 2027. Supported by its strong financial performance, Dollarama has delivered an impressive 460% return over the past decade, representing an annualized return of 18.8%.
Looking ahead, Dollarama has ample room to expand its store network. The retailer expects to increase its Canadian footprint to 2,200 stores by the end of fiscal 2034, while its Australian operations could grow from 410 to 700 stores over the same period. Supported by its capital-efficient model, rapid store ramp-ups, shorter payback periods, and modest maintenance capital requirements, this expansion could drive sustained revenue and earnings growth.
Dollarama also has substantial exposure to Latin America through its 60.1% ownership stake in Dollarcity, which operates 752 stores across five Latin American countries. Dollarcity is pursuing an aggressive expansion strategy and aims to increase its store count to 1,050 by the end of fiscal 2031. Moreover, Dollarama has an option to raise its ownership stake to 70% by the end of next year, potentially allowing it to capture a greater share of Dollarcity’s future growth.
With a proven business model, strong execution, multiple avenues for expansion, and an attractive long-term growth runway, I believe Dollarama remains a compelling stock for long-term investors.
Waste Connections
Another attractive long-term buy is Waste Connections (TSX: WCN), a leading waste management company operating across the United States and Canada. The company primarily operates in exclusive and secondary markets, where limited competition provides greater pricing power and supports attractive margins. This competitive advantage has allowed WCN to maintain healthy profitability while continuing to expand through strategic acquisitions and organic growth. Reflecting its strong execution and financial performance, WCN has delivered a total shareholder return of approximately 280% over the past decade, representing an annualized return of 14.3%.
WCN recently reported an impressive second-quarter performance, with revenue and adjusted net income increasing 6.4% and 16.2%, respectively. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin also expanded by 70 basis points to 32.8%. Following the strong results, management raised its 2026 guidance, with the midpoint of its updated revenue and net income outlook implying year-over-year growth of 6% and 8.7%, respectively.
The company also continues to expand its business through acquisitions and investments in renewable natural gas (RNG). After commissioning seven RNG facilities, WCN plans to bring five additional facilities online by year-end. Year to date, the company has completed acquisitions representing approximately $100 million in annualized revenue, while deals currently under consideration could add another $30 million. Given its strong financial position and robust acquisition pipeline, management expects 2026 to be an above-average year for acquisitions.
Meanwhile, investments in robotics, optical sorters, business analytics, AI-powered productivity tools, and AI-driven pricing optimization could further improve operational efficiency and profitability. With strong pricing power, resilient cash flows, disciplined acquisitions, and multiple avenues for margin expansion, WCN appears well positioned to deliver attractive long-term returns. Consequently, I remain bullish on the stock.
