Top Canadian Stocks to Buy Now for Long-Term Growth

The market is full of great Canadian stocks to invest in. Some of these can provide a handsome income, while others can provide turbo-charged, long-term growth that can span decades.

Here’s a look at two of those top Canadian stocks for growth-seeking investors.

This stock can be a major source of growth now and in the future

One of the most lucrative long-term growth opportunities exists in the form of dollar stores. More specifically, Dollarama (TSX:DOL).

Dollarama is the largest dollar store operator in Canada, with a whopping network of over 1,500 stores scattered across every province. Few Canadians may realize this, but Dollarama also has a growing presence in Latin America.

That includes a whopping 570 stores across Columbia, Guatemala, El Salvador, and Peru. The company is planning to increase that presence to over 1,000 stores by 2031.

In the most recent quarter, that worked out to earnings before interest, taxes, depreciation, and amortization (EBITDA) of $524.3 million. That represents an increase over the $457.2 million posted in the same period last year.

One of the reasons why dollar stores like Dollarama are such great investments for long-term growth comes thanks to the defensive appeal that they can offer.

Dollarama sells goods at fixed price points. The retailer is also known to bundle multiple lower-priced items at a single price point. This also provides significant opportunities for consumers looking to trade down to more frugal alternatives, particularly during times of inflation.

Growth-seeking investors can also take solace in knowing that Dollarama’s expansion dovetails nicely with the company’s record of dividend increases and share repurchases.

As of the time of writing, Dollarama offers investors a quarterly dividend, but the paltry 0.27% yield is hardly the reason to invest in the stock. That being said, the company has provided annual upticks to that dividend for well over a decade without fail.

During that same period, Dollarama has also repurchased $6.8 billion worth of shares. This, in conjunction with strong growth, has helped push the stock up over 45% in the past 12-month period.

Long-term growth investors should also note that Dollarama’s stock price has shot up a whopping 185% over the past five years.

A great growth driver from a business you wouldn’t expect

Another stock that long-term growth investors should consider right now is Alimentation Coche-Tard (TSX:ATD).

For those unfamiliar with the stock, Couche-Tard is one of the largest convenience store and gas station operators on the planet. The company has taken a very aggressive stance on expansion over the years, completing ever-larger deals.

In fact, Couche-Tard recently put in an offer for the largest of its peers, Japan-based Seven & i Holdings, which is the name behind the iconic (and massive) 7-Eleven brand. The US$38.5 billion offer was rejected last month, but Couche-Tard may work on sweetening that offer.

Any deal for Seven & i will create a massive retailer with a global reach and huge opportunities for growth. It’s worth noting that Couche-Tard has an established history of acquiring, absorbing and integrating acquired brands into the fold.

Yet another key point for long-term growth investors to note is Couche-Tard’s ability to scale out to adjacent product areas. Two recent examples of this that Couche-Tard is expanding more into include car washes and establishing an electric vehicle (EV) charging network.

In fact, Couche-Tard is already replicating its success in rolling out an EV network in Europe with its growing network in North America.

Finally, like Dollarama, Couche-Tard offers investors a quarterly dividend. As of the time of writing, that works out to a yield of 0.96%. Again, the intent of Couche-Tard is not the income it offers but rather its stellar growth potential.

Long-term growth is possible with these two stocks

Both Dollarama and Couche-Tarde offer investors massive long-term growth potential that is wrapped in a defensive shell. That defensive shell makes both stocks great options for any well-diversified portfolio.

Buy them, hold them, and watch them grow.