Selecting only one inventory to purchase and maintain for the long run isn’t simple. But when I’ve to choose, it must be an organization that may survive financial slowdowns, proceed rising throughout unsure intervals, and persistently reward shareholders over time. Such a great enterprise additionally wants a powerful aggressive benefit that retains clients coming again 12 months after 12 months.
That’s precisely why I like to put money into defensive firms with resilient enterprise fashions. One Canadian inventory that continues to face out to me for all the precise causes is Dollarama (TSX:DOL). The low cost retail large is well-known for delivering secure development whatever the broader financial atmosphere.
On this article, I’ll clarify why Dollarama could be my best choice if I might solely purchase and maintain a single inventory for the long term.
Supply: Getty Pictures
Dollarama inventory
To place it merely, this Mont-Royal-based firm operates one in every of Canada’s largest chains of low cost shops, promoting consumable merchandise, family items, seasonal merchandise, and basic gadgets at fastened value factors. With greater than 1,700 shops unfold throughout all Canadian provinces and two territories, Dollarama has grow to be a go-to vacation spot for value-conscious customers. Its inventory not too long ago closed at about $179 per share, giving it a market cap of roughly $48 billion.
Though Dollarama’s dividend yield stays modest at 0.3%, the corporate’s actual attraction lies in its constant earnings development and skill to generate robust long-term shareholder returns.
Monetary development developments proceed proving Dollarama’s energy
Within the fourth quarter of its fiscal 12 months 2026 (resulted in January), Dollarama registered gross sales development of 11.7% year-over-year (YoY) to $2.1 billion, pushed by increased comparable retailer gross sales and continued retailer enlargement.
The corporate’s EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) rose 6.2% from a 12 months in the past to $711.5 million throughout the quarter, reflecting strong operational execution. For the complete fiscal 12 months, its gross sales climbed 13.1% YoY to $7.3 billion whereas EBITDA elevated 13.5% to $2.4 billion.
Extra importantly, Dollarama’s financials proceed to carry out properly whilst many retailers battle with altering client spending habits and financial uncertainty. That’s as a result of extra shoppers usually search for lower-cost alternate options throughout harder financial environments, which strengthens visitors at low cost retailers like Dollarama.
Growth plans proceed to help long-term development
One of many greatest causes Dollarama might be an ideal long-term funding is its continued deal with enlargement. The corporate opened 75 web new shops in Canada throughout fiscal 2026 whereas additionally increasing internationally by means of The Reject Store banner in Australia.
Its worldwide development fundamentals might grow to be more and more vital over the following decade. Dollarcity’s continued enlargement into Mexico and different Latin American markets provides Dollarama further publicity past Canada, creating one other long-term development driver.
In the meantime, its administration stays disciplined with price management and operational effectivity. Regardless of some strain from decrease margins in Australia, Dollarama maintained a powerful annual gross margin of 45% in fiscal 12 months 2026, supported partly by decrease logistics prices in Canada.
The corporate’s capacity to stability enlargement with profitability is one other key purpose buyers proceed rewarding this reliable Canadian inventory with a premium valuation.
Silly takeaway
Clearly, Dollarama operates a enterprise that is still related throughout completely different financial circumstances. Whether or not the financial system is booming or slowing, shoppers proceed searching for comfort and worth. That resilience is tough to seek out.
That’s why Dollarama continues to face out as among the finest Canadian shares to purchase and maintain for years, particularly for buyers looking for a inventory that mixes stability, reliable development, operational energy, and long-term enlargement potential.
