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:

Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
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 Library Archives

Growth Stocks

Chipotle goes it alone on faux meat

CHIPOTLE MEXICAN GRILL, $1,467.68, is a buy. The chain (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares o/s: 28.1 million; Market cap: $41.6 billion; No divd.) is now selling its own plant-based chorizo (pork sausage) U.S.-wide after a trial run last year....

1 min read

Pat McKeough

Growth Stocks

DraftKings expands in key U.S. state

DRAFTKINGS INC., $21.40, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (www.draftkings.com; Shares o/s: 789.3 million; Market cap: $17.7 billion; No dividend) launched its mobile and online sportsbook in New York on January 8, 2022....

1 min read

Pat McKeough

Growth Stocks

Twilio is a leader in a burgeoning market

Twilio benefited from increased demand during the pandemic. But its business model and leading-edge technology also set it up for longer-term success. We recommend this stock as a Power Buy.

TWILIO INC., $203.69, is a buy. The company (Nasdaq symbol TWLO; TSINetwork Rating: Extra Risk) (www.twilio.com; Shares outstanding: 168.4 million; Market cap: $37.0 billion; No dividends paid) offers a key service to software developers who create mobile apps....

2 min read

Pat McKeough

Growth Stocks

ResMed gains ahead

RESMED INC., $241.39 (New York symbol RMD; TSINetwork Rating: Average)(www.resmed.com; Shares outstanding: 145.7 million; Market cap: $35.1 billion; Dividend yield: 0.7%) was a #1 Power Buy for 2021 at $217.96. The shares reached as high as $301.34 in September (up 38.3%), before drifting down to today’s price (for a gain of 10.7%).

We think the shares can regain last year’s all-time high—and move higher.

ResMed continues to prosper in its core market—medical devices used to treat sleep apnea....

1 min read

Pat McKeough

Growth Stocks

#1 picks to power your 2022 gains

With the start of a new year, we have singled out three growth stocks with exceptionally strong prospects for 2022.

Each of the three has successfully weathered the pandemic so far and is poised for further gains as the global economy continues its recovery.

ALTAGAS LTD., $26.88, is a #1 Power Buy for 2022. The utility (Toronto symbol ALA; TSINetwork Rating: Extra Risk)(www.altagas.ca; Shares o/s: 280.2 million; Market cap: $7.5 billion; Dividend yield: 3.9%) processes, transports, stores and markets natural gas for producers....

4 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Leon’s Furniture, Metro Inc. & Linamar Corp.

LEON’S FURNITURE LTD. $25 (www.leons.ca) is a buy. The retailer has 304 stores that sell furniture and home appliances. Leon’s has now completed its plan to buy back $200 million of its common shares (10.4% of the total outstanding) through a Dutch auction process....

1 min read

Pat McKeough

Growth Stocks

Selling LSE stake will fuel dividend

THOMSON REUTERS CORP. $141 remains a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 497.1 million; Market cap: $70.1 billion; Price-to-sales ratio: 9.7; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information and software to the legal, tax and accounting fields.

In January 2021, Thomson and Blackstone Group merged their Refinitiv financial information business with LSE—the London Stock Exchange Group plc (Over-the-counter Pink Sheets symbol LDNXF).

As of October 31, 2021, Thomson’s stake in LSE was worth $7.1 billion U.S....

1 min read

Pat McKeough

Growth Stocks

RBI targets new markets for growth

Restaurant Brands has recovered strongly from its March 2020 low, largely because its focus on drive-thru lanes and home delivery service helped offset lost sales from COVID-19 store closures. It now aims to spur its long-term growth, and your returns, with a new acquisition and by expanding its popular Popeyes brand in overseas markets.

RESTAURANT BRANDS INTERNATIONAL INC....

1 min read

Pat McKeough

Growth Stocks

Look beyond Nutrien’s CEO turmoil

NUTRIEN LTD. $90 remains a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 570.7 million; Market cap: $51.4 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.6%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 27 million tonnes annually.

The stock fell in early January 2022 after Mayo Schmidt abruptly resigned as the company’s chairman and chief executive officer....

1 min read

Pat McKeough

Growth Stocks

Three stocks to fuel your 2022 returns

The Successful Investor is highlighting three stocks as your top picks for new buying in 2022. One is from the newsletter’s Conservative portfolio, the second from its Aggressive portfolio and the third from its Income portfolio.

All three stocks performed well in 2020 and 2021 despite COVID-19 disruptions....

5 min read

Pat McKeough

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Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

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Subscriber since 1996. Inner Circle Member Since 2006
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Inner Circle Pro subscriber

Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.