If I Could Only Buy and Hold a Single Stock, This Would Be It

Choosing just one stock to buy and hold for the long term is never easy. But if I have to pick, it has to be a company that can survive economic slowdowns, continue growing during uncertain periods, and consistently reward shareholders over time. Such an ideal business also needs a strong competitive advantage that keeps customers coming back year after year.

That’s exactly why I love to invest in defensive companies with resilient business models. One Canadian stock that continues to stand out to me for all the right reasons is Dollarama (TSX:DOL). The discount retail giant is well known for delivering stable growth regardless of the broader economic environment.

In this article, I’ll explain why Dollarama would be my top choice if I could only buy and hold a single stock for the long run.

Dollarama stock

To put it simply, this Mont-Royal-based company operates one of Canada’s largest chains of discount stores, selling consumable products, household goods, seasonal merchandise, and general items at fixed price points. With more than 1,700 stores spread across all Canadian provinces and two territories, Dollarama has become a go-to destination for value-conscious shoppers. Its stock recently closed at about $179 per share, giving it a market cap of roughly $48 billion.

Although Dollarama’s dividend yield remains modest at 0.3%, the company’s real appeal lies in its consistent earnings growth and ability to generate strong long-term shareholder returns.

Financial growth trends continue proving Dollarama’s strength

In the fourth quarter of its fiscal year 2026 (ended in January), Dollarama registered sales growth of 11.7% year-over-year (YoY) to $2.1 billion, driven by higher comparable store sales and continued store expansion.

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6.2% from a year ago to $711.5 million during the quarter, reflecting solid operational execution. For the full fiscal year, its sales climbed 13.1% YoY to $7.3 billion while EBITDA increased 13.5% to $2.4 billion.

More importantly, Dollarama’s financials continue to perform well even as many retailers struggle with changing consumer spending habits and economic uncertainty. That’s because more consumers often look for lower-cost alternatives during tougher economic environments, which strengthens traffic at discount retailers like Dollarama.

Expansion plans continue to support long-term growth

One of the biggest reasons Dollarama could be a great long-term investment is its continued focus on expansion. The company opened 75 net new stores in Canada during fiscal 2026 while also expanding internationally through The Reject Shop banner in Australia.

Its international growth fundamentals could become increasingly important over the next decade. Dollarcity’s continued expansion into Mexico and other Latin American markets gives Dollarama additional exposure beyond Canada, creating another long-term growth driver.

Meanwhile, its management remains disciplined with cost control and operational efficiency. Despite some pressure from lower margins in Australia, Dollarama maintained a strong annual gross margin of 45% in fiscal year 2026, supported partly by lower logistics costs in Canada.

The company’s ability to balance expansion with profitability is another key reason investors continue rewarding this dependable Canadian stock with a premium valuation.

Foolish takeaway

Clearly, Dollarama operates a business that remains relevant across different economic conditions. Whether the economy is booming or slowing, consumers continue looking for convenience and value. That resilience is difficult to find.

That’s why Dollarama continues to stand out as one of the best Canadian stocks to buy and hold for years, especially for investors searching for a stock that combines stability, dependable growth, operational strength, and long-term expansion potential.

The post If I Could Only Buy and Hold a Single Stock, This Would Be It appeared first on The Motley Fool Canada.

Should you invest $1,000 in Dollarama right now?

Before you buy stock in Dollarama, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Dollarama wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• All-Weather TSX Stocks for Every Market Climate
• 3 Canadian Stocks Well Suited for a Long-Term Buy-and-Hold TFSA
• 1 Canadian Stock to Buy and Hold Forever in a TFSA
• Maximum TFSA Impact: 2 TSX Stocks to Help Multiply Your Wealth
• 1 TSX Consumer Stock That Could Bounce Back Fast

Fool contributor Jitendra Parashar has positions in Dollarama. The Motley Fool recommends Dollarama. The Motley Fool has a disclosure policy.