Many of us aspire to retire as millionaires. Fortunately, with consistent investments and disciplined financial planning, this goal is well within reach. For example, by investing $500 every month and increasing contributions by 10% annually in stocks that can generate an annualized return of more than 12%, an investor could build a portfolio of more than $1.14 million in just 21 years. Here are two stocks that could help deliver such impressive long-term growth.
Celestica
Celestica (TSX:CLS) has been one of the standout performers on the Canadian stock markets this year, with its share price rising nearly 270%. The company’s impressive quarterly results and robust growth prospects, supported by increasing exposure to the fast-growing artificial intelligence (AI) sector, have driven the stock price.
In its recently reported third quarter results, Celestica’s revenue grew 28%, driven by strong performance in the Connectivity & Cloud Solutions (CCS) segment, which benefited from a 79% increase in Hardware Platform Solutions revenue. The CCS segment generated revenues of $2.41 billion, up 43% year over year. However, revenue from the Advanced Technology Solutions (ATS) segment fell 4% to $0.78 billion.
Furthermore, the company’s prospects remain robust as customers continue to invest heavily in expanding its AI data center infrastructure, which could drive demand for its products and services in the coming years. Following the third quarter results, management raised expectations for 2025 and introduced an optimistic outlook for 2026. The updated expectations for 2025 assume revenue and adjusted earnings per share of 26.4% and 52.1%, respectively. Additionally, management’s 2026 targets imply an increase of 65.8% in revenue and 111.3% in adjusted earnings per share compared to 2024 levels.
Strong investor interest has boosted Celestica’s valuation, with its trailing twelve months (NTM) price-to-earnings ratio now at 44.6. However, given the company’s robust growth prospects, this premium seems justified. I believe investors can continue to accumulate shares at current levels to take advantage of the strong long-term return potential.
Dollarama
Another Canadian stock with strong long-term return potential is Dollarama (TSX:DOL), which operates 1,665 stores in Canada and 395 stores in Australia. The company’s efficient direct purchasing model and streamlined logistics have helped reduce costs, allowing the company to offer a wide range of consumer products at competitive prices. As a result, the Montreal-based retailer continues to generate solid sales even in a challenging economic environment.
In addition, steady expansion through the opening of new stores has strengthened financial performance and supported share price growth. Over the past decade, Dollarama has delivered an impressive total return of over 530%, representing an annualized growth rate of 20.2%.
Additionally, Dollarama management plans to expand its store base to 2,200 locations in Canada and 700 in Australia by the end of fiscal 2034. Backed by its capital-efficient and growth-oriented business model, rapid sales growth, short payback period and low capital requirements for maintenance, these expansion plans can drive strong long-term growth in both sales and profits.
In addition, Dollarama has a 60.1% stake in Dollarcity, which operates 658 stores in five Latin American countries. Dollarcity aims to expand its network to 1,050 stores by the end of fiscal 2031. Additionally, Dollarama has the option to increase its ownership to 70% by the end of 2027. These factors could increase Dollarcity’s contribution to Dollarama’s net revenues in the coming years. Taking all these factors into account, I think Dollarama can deliver outsized returns in the long run.
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