Most of us aspire to retire as millionaires, but this goal is far more achievable than it may seem—provided we invest consistently and remain patient over the long term. Wealth creation is less about timing the market and more about the discipline of regular investing combined with the power of compounding. For instance, investing $500 every month and earning an annualized return of 10% can grow into a portfolio of over $1 million in about 26 years. The key is staying invested through market cycles and allowing returns to compound over time.
Against this backdrop, let’s take a closer look at two Canadian stocks that have the potential to generate annualized returns of more than 10% over the long run and help investors move meaningfully closer to achieving their retirement goals.
Dollarama
Dollarama (TSX:DOL) is a proven long-term compounder, which has delivered an impressive 700% return over the past decade, translating into an annualized return of 23.1%. Supported by its superior direct-sourcing business model and highly efficient logistics network, the Montreal-based retailer can offer everyday consumer products at compelling prices, enabling it to generate strong sales regardless of broader economic conditions.
The company has consistently expanded its footprint, growing its Canadian store network from 652 locations in 2011 to 1,684 stores as of its most recently reported third quarter of fiscal 2026. In addition, Dollarama operates 401 stores in Australia, further diversifying its growth base. This steady store expansion and resilient demand have driven strong financial performance, with revenue and net income growing at annualized rates of 12.1% and 18.8%, respectively, since fiscal 2011, supporting the company’s long-term price appreciation.
Looking ahead, Dollarama continues to see a significant growth runway. Management expects the Canadian store count to reach approximately 2,200 locations by the end of fiscal 2034. Given the company’s efficient capital deployment, rapid sales ramp-up, short average payback periods, and relatively low maintenance costs, this expansion should meaningfully support both revenue and earnings growth. Over the same period, Dollarama also plans to expand its Australian footprint to 700 stores.
Beyond its core operations, Dollarama owns a 60.1% stake in Dollarcity, which operates 683 stores across five Latin American countries. With Dollarcity targeting an expansion to 1,050 stores by fiscal 2031—and Dollarama entitled to increase its ownership stake to 70% by the end of next year—I expect Dollarcity’s contribution to Dollarama’s earnings to rise steadily in the years ahead. Given its resilient business model, disciplined expansion strategy, and strong long-term growth prospects, Dollarama remains well-positioned to deliver superior long-term returns, making it an excellent buy for patient investors.
Waste Connections
Another Canadian stock that I believe has the potential to deliver exceptional long-term returns is Waste Connections (TSX:WCN), a leading waste management services provider operating across the United States and Canada. The company focuses primarily on exclusive and secondary markets, where competition is limited, allowing it to maintain higher margins and more stable pricing. In addition to steady organic growth, WCN has consistently expanded through disciplined, value-accretive acquisitions, which have been a key driver of its long-term financial performance.
Over the past five years, the company has completed more than 100 acquisitions, adding approximately $2.2 billion in annualized revenue. Supported by this growth strategy and strong operating execution, it has delivered returns of more than 420% over the past decade, translating into an annualized return of 18.2%.
Looking ahead, WCN is well-positioned to sustain its growth momentum. Backed by a strong balance sheet and healthy free cash flow generation, management plans to continue pursuing an active acquisition strategy. The company maintains a robust pipeline of private acquisition targets across the United States and Canada that could collectively contribute up to $5 billion in annualized revenue. Alongside acquisitions, WCN is leveraging advanced technologies to enhance efficiency and profitability. The deployment of robotics and optical sorters in its recycling facilities, combined with lower voluntary employee turnover driven by improved engagement and safety metrics, has supported ongoing margin expansion. The company is also using AI-driven tools to optimize commercial overage charges and reinforce pricing discipline.
Given its solid underlying business, disciplined capital allocation, and multiple long-term growth drivers, I believe WCN represents an excellent long-term investment opportunity.
