Not every stock is worth holding through market cycles, but there are some that you can buy and hold through all the economic slowdowns, rate cuts, and market cycles. These forever stocks can be excellent investments, especially for long-term investors Tax-free savings accounts (TFSAs).
Thanks to the power of long-term tax-free compounding and the ability to withdraw money without paying taxes, the TFSA can be a great investment vehicle. Today I will discuss what I believe is the ideal perpetual holding for TFSA investors: Dollarama (TSX:DOL).
Dollarama shares
Forever stocks must have characteristics that make them good investments for a long time. Stable growth and defensive qualities are some of the most important factors to take into account. Dollarama is a stock that offers both, as it has demonstrated the ability to deliver excellent returns to investors across different market cycles and tough economic conditions.
Dollarama is a Canadian company with a market capitalization of $53.73 billion that owns and operates the country’s largest chain of discount stores. It offers everyday consumer products, general merchandise and seasonal items at low fixed prices compared to other retailers. The company has approximately 1,600 stores in Canada, and the number continues to grow every year. Dollarama also has a significant presence in Latin America through Dollarcity and recently entered the Australian market.
The company’s business model is simple: it offers items that consumers need at a lower price than they would get for them elsewhere. When the economy is not doing well and people are trying to reduce costs, Dollarama offers supplies at discounted rates to provide the help people need. This allows Dollarama to generate significant revenue during periods when other retailers may be experiencing significantly lower sales.
In the third quarter of fiscal 2026, which ended in October 2025, the company’s revenue rose 22.2% year over year. The company’s adjusted quarterly profits also rose 19.4% during the same period. These two factors show that the company’s cost control is solid and its operating profit margins are better. The company did so well this quarter that it also repurchased $489 million worth of stock, strengthening the position of its investors.
Silly takeaway
Dollarama’s stake in Dollarcity continues to pay off, and its expansion in Australia is likely to deliver tremendous growth in the short and long term. Dollarama management also plans to expand its domestic presence, with the goal of reaching 2,200 locations across Canada. To be seen solid foundationsit is well positioned to deliver substantial returns over the long term.
If you have yet to use the additional contribution room in the 2026 TFSA update, I encourage you to seriously consider allocating some of it to holding Dollarama shares. It is one of the safest stocks to own in a TFSA over the long term.
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