3 Reasons to Buy Dollarama Stock Like There’s No Tomorrow

The Canadian stock market has no shortage of high-quality blue-chip stocks that have delivered massive returns to investors over the years. However, not many can claim to have provided as stellar, consistent, and reliable growth as Dollarama (TSX:DOL) stock has in recent years.

If you take a look at the last five years alone, you will see that it has earned investors massive returns.

In the last five years, the stock has grown by around 290% at an over 30% compound annual growth rate (CAGR). Going back further, the stock has delivered an immense growth of over 700% in the last 10 years at the time of writing. If you look at its share prices when the company went public, the stock has returned over 6,000%.

The rapid growth it has delivered might be reason enough for many to invest in the stock. On top of that, its consistency and the power of compounding really make it an investment you cannot ignore.

If you’re thinking about adding Dollarama stock to your portfolio, here are a few things to consider.

A robust and reliable business model

The first thing going for Dollarama is its ingenious business model. The $54.79 billion market-cap company is the owner of Canada’s largest chain of discounted retail stores. The company provides a wide range of everyday consumer products, general merchandise, and much more at far better prices than in general stores.

This attracts people looking for cost savings by offering them a better alternative. Even when the economy is doing well, business is booming for Dollarama because of cost-conscious consumers. This business model adds defensiveness, allowing Dollarama to generate substantial revenue regardless of economic cycles.

A record for consistency

Typically, defensive businesses tend to be boring stocks because the management tends to play it safe in terms of how they run the business. With Dollarama, the company takes advantage of the defensive business model and uses it to fuel growth. The management has grown the business through acquisitions rapidly and sustainably over the years.

The company has shown that it can consistently grow its earnings, expand through acquisitions, and provide dividends. These qualities can make it an excellent investment to consider.

Plenty of growth potential

Dollarama has become massive since becoming public, but that does not mean it is done growing. The company has quickly expanded its footprint across Canada, but has since moved to other international markets as well.

Domestically, it continues opening new locations. Internationally, it has a stake in Latin America through Dollarcity. It has also entered the Australian market recently, giving it more room for growth in a new international market.

Foolish takeaway

With all the growth it has delivered and future growth potential yet to be achieved, Dollarama stock seems too good to pass up. Even though it might not deliver the same kind of returns that early investors achieved, you can get immense long-term returns from the stock.

I would advise allocating some of the contribution room in your Tax-Free Savings Account (TFSA) to its shares for compounded and tax-free long-term wealth growth.

The post 3 Reasons to Buy Dollarama Stock Like There’s No Tomorrow appeared first on The Motley Fool Canada.

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

Before you buy stock in Dollarama Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Dollarama Inc. 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 $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* 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 January 15th, 2026

More reading

• Safe Canadian Stocks to Buy Now and Hold During Market Volatility
• These 2 TSX Stocks Are Set to Soar in 2026 and Beyond
• Outlook for Dollarama Stock in 2026
• The Ideal Canadian Stocks to Buy and Hold Forever in a TFSA
• Is Dollarama Stock a Good Buy?

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama. The Motley Fool has a disclosure policy.