Although the TSX Composite Index started 2025 on a strong note by surging 3.3% in the first month, escalating trade tensions and uncertainty about the future economic outlook have driven the market benchmark down by 1.3% so far in February. In times of market uncertainty and economic slowdowns, some Canadian stocks struggle while others continue to deliver strong returns year after year.
Over the years, I’ve owned many stocks — some winners, some losers. But one TSX stock has consistently delivered strong returns, no matter what the economy is doing. That’s exactly why, if I could only buy and hold a single stock, I’d stick with one that has already proven its strength in my portfolio, Dollarama (TSX:DOL). Let me explain why it could still be a great stock to buy now, especially if you’re looking for stability and long-term growth in a volatile market.
Solid track record of delivering returns
One of the biggest reasons behind Dollarama’s continued rise is its ability to thrive in any economic environment. Whether inflation is high or consumer spending is tight, most shoppers keep coming back for its unbeatable value.
That’s why, in the last 10 years, DOL stock has skyrocketed by 600%, and in 14 of the last 15 years, it has posted gains. Currently, it trades at $147.58, giving the company a market cap of $41.1 billion. While its dividend yield is modest at well less than 1%, its steady dividend growth still makes it appealing.
Strong growth, even in a tough retail market
In its latest quarter ended October 2024, Dollarama’s sales climbed 5.7% YoY (year over year) to $1.56 billion due mainly to a mix of new store openings and higher comparable sales. Although the average purchase size dipped slightly, a 5.1% YoY increase in its transaction volume clearly reflected that customers are shopping more frequently.
The company’s profitability remains strong, with its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rising 6.4% YoY to $509.7 million. This increase kept its EBITDA margin at a healthy 32.6%. Meanwhile, Dollarama’s adjusted quarterly net profit climbed 5.6% from a year ago to $275.8 million.
Big plans for the future
Dollarama’s future growth prospects look even brighter than its already impressive past performance. Its management recently raised its long-term store target from a target of 2,000 stores by 2031 to 2,200 by 2034. In my opinion, this move makes perfect sense, given the brand’s growing popularity across Canada.
On top of that, the company is expanding its logistics network with a new Western Canada distribution hub in Calgary, which will improve its supply chain efficiency and help it cut costs.
Why it’s the one stock I want to hold forever
When it comes to buying and holding a stock for the long run, you want one that consistently performs, adapts to market changes, and keeps finding new ways to grow. And Dollarama stock checks all those boxes. It continues to dominate Canada’s discount retail space and benefits from stable consumer demand while aggressively expanding its footprint, making it a great stock to buy now and hold forever.