You don’t need a large sum to start building wealth through investing. By investing consistently in quality stocks and letting compounding work, even modest contributions can grow substantially over time. For instance, investing $1,000 monthly at an assumed average annual total shareholder return of 12% could accumulate approximately $990,000 over 20 years. With this long-term wealth-building potential in mind, let’s explore two TSX stocks that could help investors achieve attractive returns over time.
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Dollarama
Dollarama (TSX: DOL) benefits from a direct-sourcing business model that strengthens its bargaining power and eliminates intermediary costs. Its optimized logistics and efficient operations further help control expenses, enabling the retailer to offer a broad range of consumer products at competitive prices. This value-driven approach supports resilient same-store sales across varying economic conditions. Meanwhile, consistent store network expansion has fueled revenue and earnings growth, contributing to impressive shareholder returns. Over the past decade, Dollarama has delivered a total shareholder return of more than 608%, representing an annualized return of 21.6%.
Looking ahead, Dollarama has significant opportunities to expand its retail footprint. The company plans to increase its Canadian store count from 1,734 to 2,200 and its Australian network from 414 to 700 stores by the end of fiscal 2034. To support its expansion in Western Canada, Dollarama is also developing a logistics hub that could become operational by the end of next year. Its capital-efficient business model, rapid store-level sales ramp-up, relatively short payback periods, and modest maintenance requirements could help these investments drive sustained revenue and earnings growth.
Beyond Canada and Australia, Dollarama has substantial exposure to Latin America’s retail market through its 60.1% stake in Dollarcity, which operates 781 stores across the region. Dollarcity aims to expand its network to 1,050 stores by the end of fiscal 2031, creating another avenue for growth. Furthermore, Dollarama can increase its ownership stake to 70% by the end of next year, potentially strengthening its participation in Dollarcity’s future growth.
Overall, Dollarama’s resilient value-focused business model, disciplined operating structure, and multiple avenues for geographic expansion provide a strong foundation for continued growth. These factors could support further long-term share price appreciation, making the stock worth considering for investors seeking sustained capital growth.
Waste Connections
Second on my list is Waste Connections (TSX: WCN), a leading provider of non-hazardous solid waste management services across the United States and Canada. Its focus on secondary and exclusive markets limits competition, strengthens pricing power, and supports higher profit margins. Meanwhile, consistent organic growth and strategic acquisitions have driven its financial performance and shareholder returns. Over the past decade, the company has delivered a total return of about 585%, or an annualized return of 21.2%.
Waste Connections delivered strong third-quarter performance this week, with revenue up 7.3% year over year to $2.6 billion and exceeding internal guidance. Higher solid waste landfill volumes and acquisitions completed over the preceding four quarters supported this growth. The company also completed several acquisitions this year, which could contribute $130 million in annualized revenue. Adjusted net income was $398.9 million or $1.58 per share, up 9.7% year-over-year, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 7.9% to $895.8 million. Its adjusted EBITDA margin also expanded by 20 basis points to 34%.
Reflecting strong cash generation, Waste Connections raised its quarterly dividend 10% to $0.39 per share, for a forward yield of about 0.6%. It also repurchased $614.5 million worth of shares this year, further enhancing shareholder value.
Following these results, management raised its 2026 guidance, with the midpoint of its updated revenue and adjusted EBITDA forecasts implying year-over-year growth of 6.6% and 7%, respectively. The company also plans to sustain an active acquisition strategy, supported by a sizeable pipeline of privately held targets. Investments in renewable natural gas facilities, technology, employee retention, and workplace safety could further improve operational efficiency and profitability.
Given its essential services, resilient cash flows, disciplined acquisitions, and promising growth opportunities, Waste Connections could be an attractive long-term investment.
