Long-term investing is one of the most powerful strategies for building wealth. By staying invested, investors can benefit from compounding, ride out short-term volatility, reduce trading costs, and spend less time actively managing their portfolios. The key, however, is to focus on fundamentally strong companies with clear growth runways. Here are two Canadian stocks that have the potential to generate substantial returns over the long term.
- Shopify: Riding the Wave of Global E-Commerce
Shopify (TSX:SHOP) has established itself as a global leader in e-commerce infrastructure, enabling businesses of all sizes to launch and scale their online operations. The company posted a stellar second-quarter performance, with gross merchandise value (GMV) climbing 30.6% to $87.8 billion. This growth was driven by both new customer acquisitions and increased spending by existing merchants.
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Revenue rose 31.1% to $2.7 billion, supported by strong performances in merchant solutions (up 37%) and subscription solutions (up 17%). At the same time, operating expenses fell as a percentage of revenue by 160 basis points to 37.7%, reflecting disciplined cost control and operating leverage. These improvements helped net income grow 16.2% to $338 million, while free cash flow reached $422 million — 16% of total revenue — marking the company’s eighth straight quarter with a double-digit free cash flow margin.
Shopify is also well-positioned to benefit from the ongoing shift toward omnichannel retail. The company is investing heavily in artificial intelligence to launch AI-powered tools that enhance the customer experience, boost merchant productivity, and increase revenue per user. Additionally, Shopify continues to expand its payments ecosystem globally, introducing features that support cross-border transactions and multiple currencies.
Given its strong fundamentals, innovative product pipeline, and global expansion strategy, Shopify has the potential to deliver multi-fold returns for patient investors over the next decade.
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- Dollarama: A Discount Retail Powerhouse
Dollarama (TSX:DOL) is another standout Canadian stock with a long runway for growth. The Montreal-based discount retailer offers a wide range of affordable consumer goods and operates on a highly efficient direct-sourcing model, cutting out intermediaries to keep costs low and strengthen its bargaining power. Combined with a streamlined logistics network, this strategy enables Dollarama to offer compelling value to customers while maintaining strong margins — even in challenging economic conditions.
The company plans to expand its store network to 2,200 locations by fiscal 2034. Its capital-light expansion strategy, fast sales ramp-up, and average payback period of under two years position these new stores to drive sustained revenue and earnings growth.
Dollarama is also growing internationally through its 60.1% stake in Dollarcity, which operates 658 stores across five Latin American countries. Dollarcity intends to expand its network to 1,050 stores by fiscal 2031, and Dollarama has the option to increase its stake to 70% by fiscal 2027. In addition, Dollarama’s recent acquisition of The Reject Shop in Australia comes with plans to grow its store count from 395 to 700 by fiscal 2034, further diversifying its growth sources.
With its strong business model, disciplined expansion strategy, and increasing international presence, Dollarama is well-positioned to deliver steady, long-term returns.
The Bottom Line
Both Shopify and Dollarama offer compelling opportunities for long-term investors. Shopify provides exposure to the fast-growing global e-commerce sector, while Dollarama delivers stability and steady growth through its discount retail model and international expansion. Holding these two quality Canadian companies could power your portfolio for years to come.
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