With thousands of stocks trading on the TSX — and even the TSX60 — narrowing it down to just one long-term winner is no easy task. But if there’s one stock that’s proven its strength through every economic cycle, continued to expand at home and abroad, and delivered consistent growth for years, it’s Dollarama (TSX:DOL).
A Consistent Growth Machine
Dollarama is a staple in Canadian portfolios — and for good reason. The company has repeatedly demonstrated its ability to grow both sales and earnings, regardless of market conditions. This was reaffirmed in its Q2 2026 results, where total sales climbed 10.3% and comparable sales increased 4.9%. This growth came from a mix of more customer visits and larger average purchases.
Domestically, Dollarama continues to expand its footprint, aiming to open 70 to 80 new stores in Canada this year alone. But the real story goes beyond Canada’s borders.
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Expanding Internationally
Dollarama has already made major inroads into Latin America through its Dollarcity chain, which saw an impressive 16.4% sales growth in Q2 and opened its first location in Mexico — a market with enormous long-term potential.
But the company isn’t stopping there. It recently acquired The Reject Shop, an Australian discount retailer with 395 stores. While the acquisition may be slightly margin-dilutive in the short term, the long-term growth opportunity is significant. This marks Dollarama’s second international platform and establishes a new global pillar for sustained expansion.
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Financially Strong and Resilient
Despite its aggressive growth strategy, Dollarama remains in excellent financial health. It continues to be one of the most profitable retailers in Canada. In Q2 2026, the company posted an EBITDA margin of 34.1% and an operating margin of 28% — levels that few global retailers can match.
Strong cash flow enabled Dollarama to repurchase 932,000 shares in the quarter, and with low debt levels, it has plenty of room to increase dividends, expand operations, and continue buybacks. Importantly, the business thrives in both good times and bad — consumers flock to discount retailers during downturns, and continue spending when times are good.
Its resilience is reflected in the stock’s performance — shares have jumped roughly 40% over the past year. And while it trades at a relatively high 41 times earnings, investors are paying a premium for quality and long-term potential.
The Bottom Line
Dollarama may seem expensive today, but its consistent growth, defensive nature, and expanding international footprint make it a standout among TSX60 stocks. It’s the kind of high-quality company that could anchor a long-term portfolio for decades.
For investors thinking long term, dollar-cost averaging into Dollarama — buying shares regularly over time — can help smooth out price fluctuations while building a solid position.
If you’re looking for one TSX60 stock to buy now and never sell, Dollarama is the one to watch.
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