3 Top Canadian shares that I would buy for dividends and capital growth | The Motley Fool Canada

For Canadian investors who want to build up wealth in the long term, the ideal shares offer both reliable dividends and steady capital valuation. These two income flows can offer a powerful composition over time.

Here are three top Canadian shares that I would buy for both dividends and capital growth. What’s use of them? They all have sustainable business models and proven history of increasing shareholder value.

Dollarama

Dollarama (TSX: Dol) is a Canadian success story of the retail trade. With more than 1,600 national stores, it sells a wide range of cheap household goods, seasonal items and party items-all priced to call on cost-conscious consumers. Categorized under the consumer’s defense sector, Dollarama tends to thrive, even during economic decline, because shoppers are increasingly seeking value.

Although the dividend yield is a meager 0.2%, that is not where the attraction is. The real power of Dollarama is in capital valuation and strong dividend growth. In the past decade, the company has multiplied the capital of investors more than six -time – an investment of $ 10,000 changed to more than $ 63,000. This amounts to an annual return of around 20%.

The dividend growth has been equally impressive. Dollarama has increased its dividend with a five -year -old annual growth rate (CAGR) of around 15%. Unfortunately, the share seems to be expensive today and acting at a forward price-gain ratio (p/e) of 40-it high in history. Each weakness would make the stock tastier.

Imperial oil

Imperial oil (TSX: IMO) is one of the leading integrated energy companies in Canada. With a company in the production of oil countries, refining and retail distribution (via Esso and Mobil), Imperial is well positioned to deliver strong shareholders’ returns in raw material cycles.

In the past 10 years, Imperial has changed an investment of $ 10,000 to almost $ 38,500, an annual return of 14.4%. The dividend performance was nothing less than Stellair, with a 10-year CAGR of 16.5% and an even stronger percentage of five years of 23%. That level of consistent growth is exactly what investors want in the long term.

The share currently yields around 2.3% and is traded by around $ 126 per share. It has had a big run – 32% in the past year – so investors would rather wait for a withdrawal.

Manulife

Manulife (TSX: MFC) is an important player in the Global Financial Services Space, who offers insurance, asset management and financial advisory services. His activities extend in Canada, the US, Asia and Europe – and offer broad geographical diversification and growth potential.

An investment of $ 10,000 in Manulife 10 years ago would now be worth around $ 32,830, which represents an annual returns of 14.6%. The dividend growth murder record is strong, with both five-year-old and 10-year-old CAGRs that are around 10%.

With around $ 43 per share, Manulife seems reasonably priced and acts on a modest p/e of 10.9. What is even more important, it offers an attractive dividend yield of just over 4%. The share has been consolidated since the end of 2024, which can be a signal for income -seeking investors to take a nibble.

Investor collection meals

These three Canadian companies offer different paths to the same goal: a growing income flow in combination with long -term capital profits. Dollarama offers growth, Imperial Oil offers high dividend growth potential of energy, and Manulife offers income with global exposure. Together they form a powerful trio for every long -term investor, although it would be great if they could withdraw to offer safer access points.