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

Metro Inc. just grew earnings 17.9%

Metro Inc. just grew earnings 17.9%

Food retailers have performed well since the start of the COVID-19 outbreak in March and this firm’s sales improved 8.1% in the most recent quarter.

The company has also raised its quarterly dividend by 12.5%. A new distribution centre should protect that payout by improving long-term… Read More

Get a 3.7% yield from ABB Ltd. ADRs

Get a 3.7% yield from ABB Ltd. ADRs

New equipment orders are up 1% despite the COVID-19 pandemic as businesses look to bolster their robotics manufacturing.

Increasing EV sales are also generating demand for the company’s infrastructure products.

ABB LTD. ADRs (New York symbol ABB; www.abb.com) gives investors a stake in this leading manufacturer of… Read More

CGI Inc. should benefit from U.S. stimulus

CGI Inc. should benefit from U.S. stimulus

Canada’s largest provider of computer outsourcing services is in a strong position to survive the crisis because its services help businesses and government agencies alike keep operating remotely.

Meanwhile, the company aims to double its annual revenue growth in the next five to seven years.

CGI INC… Read More

CGI Inc. should benefit from U.S. stimulus

CGI Inc. should benefit from U.S. stimulus

Canada’s largest provider of computer outsourcing services is in a strong position to survive the coronavirus crisis because its services help businesses and government agencies keep operating remotely.

Meanwhile, investor should benefit from the company’s goal to double its annual revenue growth in the next five… Read More