Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.

And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.

There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

Make better stock picks when you read this FREE Special Report, Canadian Growth Stocks: WestJet Stock, RioCan Stock and More.

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Growth Stocks Post Archives

Revenue gains lift debt for Parkland Fuel

Revenue gains lift debt for Parkland Fuel

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a gas-station, convenience store, and a fuel-distribution company active in Canada, the U.S., and the Caribbean.

Pat is impressed by the company’s ability to integrate numerous acquisitions as it keeps growing same-store sales… Read More

How you can spot the best investments for long-term growth

How you can spot the best investments for long-term growth

The best investments for long-term growth typically include hidden assets, a strong hold on a market, and more
We continue to think Successful Investors will profit most—and with the least risk—by buying shares of well-established companies with strong business prospects and strong positions in healthy industries… Read More

23 top tips for successfully investing in TSX growth stocks

23 top tips for successfully investing in TSX growth stocks

Despite the market volatility of 2019—and their own increased volatility—TSX growth stocks can make excellent long-term investments.

By definition, TSX growth stocks are companies on the Toronto Stock Exchange that have above-average growth prospects. They are firms whose earnings growth has been—or is projected to be—above… Read More

Genworth MI Canada awaits outcome of Chinese takeover bid

Genworth MI Canada awaits outcome of Chinese takeover bid

Recently a Member of Pat McKeough’s Inner Circle asked his opinion of Canada’s second largest default mortgage insurer.

Overall, says Pat, the company’s fundamentals are sound. With its shares trading at just 8.5 times forecast earnings and a high dividend yield, it looks like an… Read More