When I think about building an RRSP, I don’t think about the next quarter or even the next year. I think about where I want my portfolio to be 20 or 30 years from now. That’s why I believe stock selection inside an RRSP deserves a little more thought than simply buying whatever happens to be popular today. The best RRSP investments, in my opinion, are businesses that can continue growing earnings through different economic cycles while rewarding patient shareholders over time.
No company is perfect, and there’s no such thing as a guaranteed winner. Markets change. Industries evolve. Management teams make mistakes. But there are a handful of Canadian companies that I think have the right ingredients to remain exceptional businesses for years to come. These are the five Canadian stocks I’d be comfortable building an RRSP around today.
#5 Shopify Inc. (TSX: SHOP)
Approximate Share Price: $165 CAD
Market Capitalization: $213 billion
Industry: E-commerce Software
Why It Made My List
Shopify is easily the highest-growth company on this list. E-commerce isn’t a new trend anymore, but I don’t think it’s finished growing either. More businesses continue moving online, and merchants are increasingly looking for platforms that let them control their own customer relationships instead of relying entirely on online marketplaces. Artificial intelligence is another area I’ll continue watching. Shopify has been steadily incorporating AI tools that help merchants create stores, improve marketing, and manage inventory more efficiently. If those tools continue improving, they could strengthen Shopify’s competitive position even further.
What I Like
What impresses me most is that Shopify keeps finding new ways to grow beyond simply helping businesses build websites. Payments, fulfillment partnerships, international expansion, AI-powered tools, and enterprise customers all create additional opportunities. The balance sheet is also in excellent shape, giving management flexibility to invest aggressively without putting unnecessary financial pressure on the business. Management has shown they’re willing to make difficult decisions when necessary. I respect that.
One Thing I’d Watch
Valuation. This is an outstanding company, but it’s rarely a cheap stock. Expectations remain high, which means even strong earnings can sometimes disappoint investors if growth slows.
Would I Buy Today?
I’d happily own Shopify for the next decade, but I’d probably add shares gradually instead of making one large purchase at today’s valuation.
#4 Canadian National Railway (TSX: CNR)
Approximate Share Price: $178 CAD
Market Capitalization: $107 billion
Industry: Rail Transportation
Why It Made My List
Railroads aren’t exciting, but they don’t need to be. Canada continues investing in infrastructure while North American trade remains incredibly important. Regardless of what happens with interest rates or economic cycles, goods still need to move across the country. That’s exactly where CNR shines.
What I Like
One thing I really like about Canadian National is its competitive moat. You simply can’t wake up tomorrow and build another coast-to-coast railway. The infrastructure would cost enormous amounts of money and likely never receive regulatory approval. That creates an incredibly durable business. The company consistently generates strong cash flow, maintains a healthy balance sheet, and has rewarded shareholders with years of dividend growth. This is exactly the kind of business I like owning inside a retirement account.
One Thing I’d Watch
Freight volumes. Economic slowdowns can temporarily reduce shipping demand, which affects revenue growth. That’s normal for the business, but it’s still something worth monitoring.
Would I Buy Today?
Personally, yes. I don’t expect explosive returns every year, but I’d feel very comfortable owning CNR for decades.
#3 Alimentation Couche-Tard (TSX: ATD)
Approximate Share Price: $91 CAD
Market Capitalization: $83 billion
Industry: Convenience Retail
Why It Made My List
Couche-Tard continues to impress me. While many retailers struggle with changing consumer habits, this company has consistently expanded internationally while integrating acquisitions better than almost anyone else. I also think management deserves a tremendous amount of credit. Their ability to allocate capital has been exceptional over many years.
What I Like
Free cash flow. That’s one metric I always pay attention to because it gives companies flexibility. Couche-Tard generates significant cash that can be used for acquisitions, investing back into the business, buying back shares, or increasing shareholder returns. I also like that convenience retail remains surprisingly resilient during weaker economic environments. People still fuel their vehicles. They still stop for coffee. They still grab snacks on road trips. It’s a business model that has proven remarkably durable.
One Thing I’d Watch
Electric vehicles. The transition won’t happen overnight, but fewer gasoline sales could eventually change customer traffic patterns. Management has already begun adapting, but it’s a long-term trend worth following.
Would I Buy Today?
Absolutely. This remains one of my favourite Canadian businesses, even after years of outstanding performance.
#2 Dollarama Inc. (TSX: DOL)
Approximate Share Price: $190 CAD
Market Capitalization: $51 billion
Industry: Discount Retail
Why It Made My List
Dollarama has surprised me for years. Many people assume discount retailers only perform well during difficult economic periods. I don’t think that’s entirely true anymore. Consumers continue looking for value regardless of the economic environment, and Dollarama has built an incredibly efficient business around that reality.
What I Like
This company executes exceptionally well. Store expansion continues steadily, inventory management remains disciplined, and margins have stayed impressive despite inflationary pressures over the past several years. The business also requires relatively modest capital compared to many other retailers. That combination has produced outstanding shareholder returns. When I think about companies that consistently do the little things well, Dollarama immediately comes to mind.
One Thing I’d Watch
Growth eventually slows for every retailer. The biggest question isn’t whether Dollarama is a great business—it clearly is. The question is how much future growth is already reflected in today’s share price.
Would I Buy Today?
I’d still be comfortable owning it long term, although I certainly wouldn’t complain if the market gave investors a better entry point.
#1 Toronto-Dominion Bank (TSX: TD)
Approximate Share Price: $168 CAD
Market Capitalization: $277 billion
Industry: Banking
Why It Made My List
Some people may be surprised that I ranked TD ahead of Royal Bank. The way I see it, much of the recent negativity surrounding TD has created an opportunity for long-term investors. The bank continues generating significant earnings, maintains a strong capital position, and pays an attractive dividend. Meanwhile, higher interest rates have improved lending margins across much of the banking sector, even if economic growth has moderated. I think the long-term story remains intact.
What I Like
Canadian banks have proven their resilience through multiple recessions, financial crises, and market downturns. TD remains one of the country’s largest financial institutions with diversified revenue streams across personal banking, wealth management, and commercial lending. I also appreciate management’s conservative approach to capital. The dividend continues providing meaningful income while investors wait for long-term growth. For an RRSP, that’s a combination I find very attractive.
One Thing I’d Watch
Regulatory issues in the United States. They’re unlikely to define TD forever, but management still needs to demonstrate that the bank can move beyond recent challenges while restoring investor confidence.
Would I Buy Today?
Personally, yes. If I were adding a Canadian financial stock to my RRSP today, TD would be near the top of my list.
Final Thoughts
Although these five companies operate in completely different industries, they have something important in common. They’re all businesses that have demonstrated an ability to adapt. Whether it’s Shopify investing heavily in AI, CNR benefiting from North American infrastructure, Couche-Tard continuing its acquisition strategy, Dollarama capitalizing on changing consumer behaviour, or TD working through temporary headwinds, each company has a long-term story that extends well beyond next quarter’s earnings report.
Over the next year, I’d continue watching interest rates, consumer spending, global trade, and corporate earnings. Those factors will influence share prices, but they shouldn’t distract investors from evaluating the quality of the underlying businesses. I think this list is best suited for Canadians who are building wealth over decades rather than chasing the next hot stock. At the end of the day, the strongest RRSP portfolios usually aren’t built by finding perfect companies—they’re built by owning great businesses long enough to let compounding do the heavy lifting.
