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Dollarama Inc. (TSX: DOL) is once again commanding investor attention as the stock trades near fresh all-time highs on December 24, 2025, outperforming both the S&P/TSX Composite Index and the broader TSX 60.
At a time when inflation pressures, geopolitical uncertainty, and shifting consumer behavior continue to shape global markets, Dollarama’s resilience has reignited a familiar debate:
👉 Is Dollarama still a buy at these levels, or is the valuation stretched too far?
This article breaks down why investors are still bullish, where the risks lie, and where Dollarama stock could realistically be in 5 years.
On December 24, Dollarama shares:
Despite concerns about valuation, the market narrative around Dollarama has shifted from “safe inflation hedge” to long-term compounder.
Dollarama has proven one thing consistently:
It thrives when consumers feel pressure.
In a world shaped by:
Dollarama’s business model remains structurally defensive.
Dollarama is no longer just a Canada-focused discount chain.
Key expansion drivers:
This global angle is why analysts increasingly view Dollarama not just as a retailer but as a scalable consumer platform.
Yes, Dollarama’s valuation is elevated relative to historic averages.
However:
In short, investors appear willing to pay up for certainty.
| Factor | Dollarama | TSX Composite |
|---|---|---|
| Earnings visibility | High | Mixed |
| Inflation resilience | Strong | Uneven |
| Consumer demand | Defensive | Cyclical |
| Volatility sensitivity | Low | High |
This explains why Dollarama continues to outperform, even when broader indices stall.
While Dollarama is defensive, it is not immune to risk:
Still, compared to many retail peers, Dollarama’s downside risk appears limited.
➡️ Potential outcome: Solid double-digit annualized returns
➡️ Outcome: Dollarama becomes one of the TSX’s most dominant consumer stocks
➡️ Outcome: Stock consolidates rather than collapses
ltas Opinion 🧠
From Altas’ perspective, Dollarama represents disciplined optimism.
“Dollarama may not be cheap but in a world of geopolitical risk, slowing growth, and fragile consumer confidence, investors are paying for stability, scale, and execution.”
For long-term investors, Dollarama remains:
That combination explains why money continues to flow into TSX:DOL even near highs.
It trades at a premium, but the valuation reflects earnings reliability and long-term growth potential.
Moderate inflation often helps Dollarama as consumers seek cheaper alternatives.
Historically, defensive retailers like Dollarama perform better during uncertain periods.
Yes, and dividend growth has been supported by strong cash flow.
In terms of consistency and risk-adjusted returns, many investors believe it is.
Dollarama’s rally near record highs is not accidental it reflects investor trust in a business model built for uncertainty.
While valuation risks remain, Dollarama continues to check the boxes that matter most in today’s market:
✔ Earnings visibility
✔ Defensive demand
✔ Long-term expansion
Whether you’re a cautious investor or a long-term holder, Dollarama remains one of the most compelling consumer stocks on the TSX.
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