Should I Buy Dollarama Stock in Canada in 2025?
Is it the right time to buy Dollarama?
ScoreDollarama Inc. (TSE: DOL), trading at approximately $191.87 as of July 2025, continues to solidify its stature as Canada’s premier discount retailer. With a recent three-month average daily volume around 815,279 shares and a market cap exceeding $53 billion, investor interest remains resilient. The company’s latest quarterly results outpaced expectations, notably with Q1 2026 net earnings surging 26.9% year-over-year, and an EBITDA margin nearing 33% – a benchmark that far outstrips North American competitors. Recent headline events, such as the proposed acquisition of The Reject Shop in Australia and the addition of 22 new domestic locations, signal continued growth beyond Canadian borders. Market sentiment is constructive, reflecting confidence in Dollarama’s operational model and disciplined expansion. The stock’s trading pattern has been consistently above its key moving averages, indicating ongoing upward momentum in the consumer staples sector, which is generally seen as stable during economic shifts. With a consensus target price near $250 set by more than 10 respected national and international banks, Dollarama presents a compelling opportunity for investors seeking exposure to reliable growth in the retail segment.
- ✅Consistent revenue and net profit growth, outpacing sector averages.
- ✅Exceptional EBITDA margins—nearly triple those of major US retail peers.
- ✅Aggressive domestic and international store network expansion plans.
- ✅Proven leadership and efficient cost structure drive long-term competitiveness.
- ✅Strong brand recognition and dominant position in Canadian discount retail.
- ❌High valuation with a P/E ratio above sector norms may limit short-term upside.
- ❌Significant revenue still derived from Canadian market, limiting geographic diversification.
Score- ✅Consistent revenue and net profit growth, outpacing sector averages.
- ✅Exceptional EBITDA margins—nearly triple those of major US retail peers.
- ✅Aggressive domestic and international store network expansion plans.
- ✅Proven leadership and efficient cost structure drive long-term competitiveness.
- ✅Strong brand recognition and dominant position in Canadian discount retail.
Is it the right time to buy Dollarama?
- ✅Consistent revenue and net profit growth, outpacing sector averages.
- ✅Exceptional EBITDA margins—nearly triple those of major US retail peers.
- ✅Aggressive domestic and international store network expansion plans.
- ✅Proven leadership and efficient cost structure drive long-term competitiveness.
- ✅Strong brand recognition and dominant position in Canadian discount retail.
- ❌High valuation with a P/E ratio above sector norms may limit short-term upside.
- ❌Significant revenue still derived from Canadian market, limiting geographic diversification.
Score- ✅Consistent revenue and net profit growth, outpacing sector averages.
- ✅Exceptional EBITDA margins—nearly triple those of major US retail peers.
- ✅Aggressive domestic and international store network expansion plans.
- ✅Proven leadership and efficient cost structure drive long-term competitiveness.
- ✅Strong brand recognition and dominant position in Canadian discount retail.
- What is Dollarama?
- Dollarama Stock Price
- Our full analysis of Dollarama stock
- How to buy Dollarama stock in Canada?
- Our 7 tips for buying Dollarama stock
- The latest news about Dollarama
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the Dollarama share price for over three years. Every month, hundreds of thousands of users in Canada trust us to analyze market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment recommendations. In accordance with our ethical charter, we have never been, and will never be, compensated by Dollarama.
What is Dollarama?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | Dollarama leads Canada's discount retail sector, providing strong local brand recognition. |
| 💼 Market | TSX (DOL) | The Toronto Stock Exchange listing ensures liquidity and access for Canadian investors. |
| 🏛️ ISIN code | CA25675T1075 | ISIN code supports seamless trading of Dollarama shares on global platforms. |
| 👤 CEO | Neil Rossy | Neil Rossy’s strategic leadership has driven Dollarama’s expansion since 2016. |
| 🏢 Market cap | 53.19 billion CAD | High market cap highlights Dollarama’s dominant status within Canadian retail. |
| 📈 Revenue | 1.52 billion CAD (Q1 2026) | Solid revenue growth reflects store network expansion and resilient demand. |
| 💹 EBITDA | 496.2 million CAD (Q1 2026) | Exceptional margin demonstrates strong operating efficiency and business model strength. |
| 📊 P/E Ratio (Price/Earnings) | 43.91 | Elevated P/E ratio indicates high investor expectations for continued growth. |
Dollarama Stock Price
The price of Dollarama stock is rising this week. The current share price is 191.87 CAD, reflecting a 0.88% increase over the last 24 hours. Dollarama’s market capitalization stands at 53.19 billion CAD, with an average three-month trading volume of 815,279 shares. The P/E ratio is 43.91, with a dividend yield of 0.22% and a low beta of 0.53, indicating relatively modest volatility. With ongoing store expansion and standout profitability, Dollarama stock remains an attractive consideration for Canadian investors seeking stable retail growth.
Our full analysis of Dollarama stock
After a comprehensive review of Dollarama's most recent financial statements and its performance trajectory over the last three years, our analysis synthesizes multiple streams of data—ranging from up-to-date financial indicators and technical signals to cross-industry trends and peer benchmarks—refined through proprietary algorithms designed to highlight market-leading opportunities. This evidence-based approach reveals Dollarama’s unique growth story in the discount retail sector. So, why might Dollarama stock once again become a strategic entry point into North America's value retail landscape in 2025?
Recent performance and market context
Dollarama’s stock continues its impressive run, closing recently at 191.87 CAD—a new record high within a 52-week range of 124.39 to 196.46 CAD. The stock has gained considerable momentum from a robust Q1 2026 earnings season, where EPS and EBITDA exceeded analyst expectations, pointing to an acceleration in operational performance. Notable positive catalysts include a successful expansion of the store network, highlighted by the addition of 22 new locations in the first quarter, and the proposed acquisition of The Reject Shop in Australia, signaling the company’s international ambitions. Against the backdrop of persistent macroeconomic uncertainties, Dollarama’s focus on value-conscious consumers helps the brand capture greater market share, especially as inflationary pressures and shifting spending patterns drive Canadians toward discount retailers. The overall sector remains buoyant, with defensive, cash-generating business models outperforming in times of economic ambiguity—making Dollarama an especially appealing proposition for investors seeking stability and growth.
Technical analysis
From a technical standpoint, Dollarama displays a textbook bullish structure. The 14-day RSI stands at 63.28, reflecting ongoing, healthy momentum comfortably below overbought levels, and the MACD at 4.74 is firmly in buy territory, reinforcing the positive trend. The share price consistently trades above all key moving averages—20, 50, 100, and 200 days (ranging from 187.32 to 152.54 CAD)—providing layered support and an unmistakable evidence of underlying strength. Immediate technical support can be found at 184.95 CAD, while resistance sits near 195.33 CAD; with prices closing in on this level, a clean break could open the path for further gains. The technical uptrend is further underscored by Dollarama’s ability to maintain its position above all moving averages through diverse market conditions, showing resilience against volatility and reflecting sustained buying interest from both retail and institutional traders. These signals support short- and medium-term accumulation strategies, pointing toward an ongoing bullish phase.
Fundamental analysis
Dollarama’s fundamentals underline a robust, growth-driven business model. In Q1 2026, revenues surged to 1.52 billion CAD, up 8.5% year-over-year, while net earnings reached 273.8 million CAD, up a remarkable 26.9%. EBITDA margins have climbed to an industry-leading 32.6%, almost triple those of US competitors like Walmart and Target, confirming not only operational efficiency but also brand pricing power. The company’s aggressive but disciplined expansion—marked by the rollout of over 1,300 stores and recent forays into Latin America and Australia—diversifies revenue streams and mitigates domestic saturation risks. The market capitalization currently sits at 53.19 billion CAD, with a forward-looking eye on continued increases as more international growth is unlocked. Although the P/E ratio is relatively high at 43.91, this valuation is arguably justified by Dollarama’s resilient earnings momentum, unique margins, and proven ability to generate above-market returns in both stable and volatile environments. Brand equity remains a core structural strength, benefiting from broad recognition and a data-driven approach to assortment, pricing, and supply chain management. The consistent ability to outpace analyst expectations further affirms that Dollarama’s valuation, while rich, reflects deep-seated business quality and future opportunity.
Volume and liquidity
Market confidence in Dollarama is powerfully reflected in sustained volume and liquidity. The average three-month trading volume stands at 815,279 shares per day—solid liquidity for a major Canadian retailer. A well-distributed float and healthy institutional participation ensure sharp price discovery and low transaction friction, facilitating entry and exit for both retail and professional investors. In the current context, such liquidity is an important asset: it gives investors optionality around position sizing, tactical trades, and longer-term accumulation. High liquidity also supports valuation dynamics, as Dollarama remains a core holding in major Canadian and North American consumer indices, reinforcing steady demand for the stock.
Catalysts and positive outlook
Dollarama is well-positioned with multiple near- and long-term catalysts driving growth. Key among them is the expansion into new geographies, with the Dollarcity format expanding across Latin America and the pending acquisition of The Reject Shop set to establish a significant Australian presence. These moves not only diversify the revenue base, but introduce Dollarama’s highly efficient, scalable retail model to new consumer markets. Additional bullish drivers include:
- An industry-leading EBITDA margin that can be leveraged for further price and promotional flexibility;
- Continued store network growth, targeting underserved Canadian communities and high-density urban areas;
- Advancements in technology and data analytics to optimize inventory management and customer engagement;
- Ongoing ESG and supply chain sustainability initiatives, aligning Dollarama with evolving consumer expectations and regulatory requirements.
While the company does have a high P/E (a function of sustained investor confidence in growth), margin expansion and a nimble cost model suggest this premium is justified by unique operational advantages. In a retail environment where scale, efficiency, and adaptability are core, Dollarama continues to set the pace.
Investment strategies
Dollarama’s present technical, fundamental, and macro positioning presents opportunities for a range of investor strategies.
- Short-term: Recent breakouts above key technical resistance, reinforced by strong earnings, lend credence to tactical trades targeting sustained momentum into new highs. With price action showing resilience at support near 185 CAD, calculated entries here may offer attractive risk/reward.
- Medium-term: As integration of new international assets unfolds and Canadian expansion continues, medium-term investors may capitalize on revenue and earnings accretion ahead of potential upside revisions from analysts and the next few earnings releases.
- Long-term: Investors seeking a compounder with durable competitive advantages are well served by Dollarama’s adaptive store network, dominant market share, and unmatched margins—a model that has generated strong, consistent returns over more than a decade. Ongoing internationalization opens new medium- to long-term profit pools.
For each time horizon, technical positioning at layered supports combined with upcoming strategic catalysts offers a compelling window for entry or portfolio re-weighting. Dollarama’s fundamentals, coupled with its liquidity and sector leadership, encourage a constructive outlook for new or expanded positions.
Is it the right time to buy Dollarama?
Dollarama’s combination of strong financials, sustained technical outperformance, robust volume, and exposure to powerful consumption trends point to a company not just weathering but capitalizing on market challenges. The ability to consistently grow earnings, expand margins, and leverage operational scale—while aggressively yet prudently entering new markets—makes Dollarama a rare leader in the North American retail sector. Current valuation multiples, while elevated, are underpinned by a visible growth runway and continued delivery against expectations.
In this context, Dollarama seems to represent an excellent opportunity for investors seeking stable, scalable, and resilient exposure to value retailing—with a profile that rewards both tactical and long-term approaches. As Canadian and global retail landscapes shift, Dollarama’s strengths justify renewed interest for those looking to participate in the next chapter of this sector’s evolution.
With strong momentum, outstanding fundamentals, and clear catalysts on the horizon, Dollarama stock appears to be entering a compelling new bullish phase—affirming its place as a top consideration on any investor’s watchlist for 2025 and beyond.
How to buy Dollarama stock in Canada?
Buying Dollarama stock online is straightforward, secure, and accessible to Canadians through regulated brokers. There are two main ways to get exposure: you can purchase Dollarama shares directly (spot buying), or choose CFD trading to speculate on price movements without owning the shares. Both approaches are available from your computer or smartphone in just a few steps. For a detailed comparison of brokers, including fees and services, see our dedicated section further down the page.
Cash buying
A cash purchase means you actually own Dollarama shares in your brokerage account, participating directly in the company’s growth. Canadian brokers typically charge a fixed commission per trade—usually around $5 to $10 CAD.
Gain scenario
If the Dollarama share price is 191.87 CAD, you can buy around 5 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
Trading Dollarama shares via CFDs lets you speculate on the price with no actual share ownership. Brokers charge fees through the spread (difference between buy and sell prices) and, if using leverage, overnight financing.
CFD Position on Dollarama Shares
You open a CFD position on Dollarama shares, with 5x leverage.
This gives you a market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
It's essential to compare broker fees, trading conditions, and services before you invest. Whether you prefer the direct ownership of spot buying or the flexibility of CFDs, the right choice depends on your personal investment goals and risk profile. Use the broker comparison tool further down this page to select what's best for you.
Compare the best brokers in Canada!Compare brokersOur 7 tips for buying Dollarama stock
| 📊 Step | 📝 Specific tip for Dollarama |
|---|---|
| Analyze the market | Examine retail and consumer spending trends in Canada, as Dollarama thrives in all economic cycles. |
| Choose the right trading platform | Opt for a Canadian broker with access to the TSX and low transaction fees for efficient Dollarama share purchases. |
| Define your investment budget | Decide how much to invest by considering Dollarama’s growth, its current high valuation, and diversification needs. |
| Choose a strategy (short or long term) | For Dollarama, long-term investing can capture network expansion and international growth benefits. |
| Monitor news and financial results | Regularly track Dollarama’s quarterly earnings and new store openings, which are key to its stock’s performance. |
| Use risk management tools | Set stop-loss levels or price alerts to manage exposure, as retail can sometimes be volatile. |
| Sell at the right time | Take profits near historic highs or following strong earnings surprises to maximize gains from Dollarama’s uptrends. |
The latest news about Dollarama
Dollarama reported a significant 26.9% year-over-year increase in net earnings for Q1 2026, surpassing analyst expectations. This outstanding profit performance was driven by rising sales and EBITDA that exceeded consensus, reflecting resilient consumer demand and effective margin management in the Canadian market.
The company expanded its Canadian retail network with 22 new store openings in the latest quarter. With more than 1,300 locations, Dollarama’s robust store expansion strategy further secures its leadership in the Canadian discount retail segment, providing broad access to value-focused shoppers nationwide.
Technical indicators show strong bullish momentum, with Dollarama shares trading above all key moving averages. With the stock price near record highs and positive technical signals such as a “buy” MACD and neutral RSI, analysts cite a favorable setup for ongoing investor confidence in the near term.
Dollarama announced a proposed acquisition of The Reject Shop, marking its first major move into Australia. This international expansion is expected to diversify Dollarama’s revenue streams and further increase its geographic footprint, adding to its ongoing success in Latin America through Dollarcity.
Dividend distributions from Dollarama remain attractive, offering Canadian investors eligible “eligible dividends” status. Not only does Dollarama continue to deliver consistent quarterly dividends, but its distributions also enjoy preferential tax treatment under Canadian tax law, which enhances net returns for local shareholders.
FAQ
What is the latest dividend for Dollarama stock?
Dollarama pays a quarterly dividend, with the most recent amount at $0.105 per share. The dividend yield is modest, reflecting the company’s focus on growth and reinvestment. Dollarama’s dividend policy has been consistent, providing regular payouts to investors while supporting its network and expansion plans.
What is the forecast for Dollarama stock in 2025, 2026, and 2027?
According to recent data, projections for Dollarama stock are $249 at the end of 2025, $288 at the end of 2026, and $384 at the end of 2027. These forecasts are reinforced by Dollarama’s strong fundamentals, sector-leading margins, and ambitious Canadian and international expansion.
Should I sell my Dollarama shares?
Holding Dollarama shares can be a solid decision for many investors. The company demonstrates remarkable resilience, continually exceeding expectations and maintaining strong growth in both earnings and store count. Its sector dominance and commitment to operational excellence suggest that long-term growth prospects remain promising.
Are Dollarama dividends and capital gains taxed favourably for Canadian investors?
Yes, Dollarama dividends are classified as “eligible dividends” under Canadian law, giving shareholders access to a lower tax rate through the dividend tax credit. Capital gains from selling Dollarama shares are taxed according to standard Canadian rules, with only half the gain included as taxable income, offering an efficient investment framework for residents.
What is the latest dividend for Dollarama stock?
Dollarama pays a quarterly dividend, with the most recent amount at $0.105 per share. The dividend yield is modest, reflecting the company’s focus on growth and reinvestment. Dollarama’s dividend policy has been consistent, providing regular payouts to investors while supporting its network and expansion plans.
What is the forecast for Dollarama stock in 2025, 2026, and 2027?
According to recent data, projections for Dollarama stock are $249 at the end of 2025, $288 at the end of 2026, and $384 at the end of 2027. These forecasts are reinforced by Dollarama’s strong fundamentals, sector-leading margins, and ambitious Canadian and international expansion.
Should I sell my Dollarama shares?
Holding Dollarama shares can be a solid decision for many investors. The company demonstrates remarkable resilience, continually exceeding expectations and maintaining strong growth in both earnings and store count. Its sector dominance and commitment to operational excellence suggest that long-term growth prospects remain promising.
Are Dollarama dividends and capital gains taxed favourably for Canadian investors?
Yes, Dollarama dividends are classified as “eligible dividends” under Canadian law, giving shareholders access to a lower tax rate through the dividend tax credit. Capital gains from selling Dollarama shares are taxed according to standard Canadian rules, with only half the gain included as taxable income, offering an efficient investment framework for residents.
