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There’s no query that relating to discovering one of the best Canadian shares that traders should purchase and maintain for the lengthy haul, Dollarama (TSX:DOL) persistently sits close to the highest of the listing.
The corporate has constructed one of many strongest and most resilient enterprise fashions within the nation, delivering regular development by means of each attainable financial surroundings. Whether or not the financial system is booming or shoppers are feeling pressured, Dollarama continues to see dependable visitors as consumers search for worth and comfort.
That resilience is an enormous purpose why Dollarama has change into one of the vital constant performers on the TSX during the last decade. The truth is, in simply the final 10 years, Dollarama has earned traders a complete return of greater than 720%. That’s a compound annual development price of roughly 23.5%.
The corporate is consistently benefiting from its large nationwide footprint, robust model recognition, and a pricing mannequin that enables it to cross by means of value will increase whereas nonetheless delivering worth to prospects.
On the similar time, Dollarama continues to quickly increase its retailer base, develop same-store gross sales, and enhance effectivity, which has helped drive spectacular earnings development over time.
Moreover, on prime of all the expansion potential it nonetheless has in Canada, Dollarama inventory has additionally been quickly increasing its presence internally as nicely, giving it a tonne of development potential for many years to return.
Dollarama is a enterprise constructed for constant development
One of many greatest the reason why Dollarama inventory continues to outperform the remainder of the market is the effectivity of its enterprise mannequin. The corporate is consistently producing tonnes of free money move, which it reinvests again into development whereas nonetheless returning capital to shareholders.
For instance, a part of why it will possibly persistently develop and develop so rapidly is that opening new shops is extremely economical for Dollarama. On common, a brand new location requires lower than $1 million in upfront funding, and most shops sometimes obtain payback in simply two years.
That effectivity has enabled Dollarama to open a mean of about 66 internet new shops per yr during the last decade. And searching forward, administration has elevated its long-term Canadian retailer goal to 2,200 areas by 2034, up from the 1,684 shops it has in operation in the present day. That equates to roughly 60–70 new retailer openings per yr, which is correct in keeping with its goal.
Worldwide growth provides extra development potential for Dollarama inventory
Along with its core Canadian enterprise, although, Dollarama’s rising worldwide presence has change into an more and more vital a part of why it’s among the finest development shares to purchase and maintain for the lengthy haul.
By means of its majority stake in Dollarcity, the corporate now has publicity to lots of of shops throughout Latin America, together with Colombia, Guatemala, El Salvador, and Peru. Moreover, Dollarama is rising its publicity in Australia.
And in 2025, Dollarama additionally entered the Mexican market when it opened its first retailer in mid-2025. This growth into Mexico creates a major long-term alternative given the dimensions of the market and demand for inexpensive on a regular basis items within the nation.
Moreover, these worldwide operations are already contributing to earnings, including one other layer of diversification and development potential to the general enterprise.
Outlook for 2026 and past
Waiting for fiscal 2027, which begins initially of February, the outlook stays engaging for Dollarama inventory.
For instance, analysts are estimating Dollarama’s income will soar one other 12% yr over yr, and its normalized earnings per share are estimated to extend by over 13% subsequent yr as its margins proceed to enhance.
So though Dollarama inventory isn’t low cost in the present day and trades at almost 40 instances ahead earnings, it’s the lengthy runway of fast development potential over the subsequent decade and past that continues to make it among the finest Canadian shares traders can personal.
