Selecting only one inventory to purchase and maintain for the long run isn’t simple. But when I’ve to choose, it needs to be an organization that may survive financial slowdowns, proceed rising throughout unsure intervals, and persistently reward shareholders over time. Such an excellent enterprise additionally wants a powerful aggressive benefit that retains prospects coming again 12 months after 12 months.
That’s precisely why I like to put money into defensive corporations with resilient enterprise fashions. One Canadian inventory that continues to face out to me for all the correct causes is Dollarama (TSX:DOL). The low cost retail large is well-known for delivering secure development whatever the broader financial surroundings.
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.
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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 common objects at fastened value factors. With greater than 1,700 shops unfold throughout all Canadian provinces and two territories, Dollarama has turn into a go-to vacation spot for value-conscious consumers. Its inventory just lately 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 (led to January), Dollarama registered gross sales development of 11.7% year-over-year (YoY) to $2.1 billion, pushed by greater 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 in the course of the quarter, reflecting stable operational execution. For the total 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 nicely whilst many retailers battle with altering client spending habits and financial uncertainty. That’s as a result of extra customers usually search for lower-cost options throughout harder financial environments, which strengthens visitors at low cost retailers like Dollarama.
Enlargement plans proceed to assist long-term development
One of many greatest causes Dollarama might be an awesome long-term funding is its continued give attention to enlargement. The corporate opened 75 internet new shops in Canada throughout fiscal 2026 whereas additionally increasing internationally via The Reject Store banner in Australia.
Its worldwide development fundamentals might turn into more and more necessary over the subsequent decade. Dollarcity’s continued enlargement into Mexico and different Latin American markets offers Dollarama extra 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 capability to stability enlargement with profitability is one other key motive traders proceed rewarding this reliable Canadian inventory with a premium valuation.
Silly takeaway
Clearly, Dollarama operates a enterprise that continues to be related throughout totally different financial situations. Whether or not the economic system is booming or slowing, customers proceed in search of comfort and worth. That resilience is tough to search out.
That’s why Dollarama continues to face out as top-of-the-line Canadian shares to purchase and maintain for years, particularly for traders trying to find a inventory that mixes stability, reliable development, operational energy, and long-term enlargement potential.
