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

Regeneron offers you biotech gains

We think the drug industry will enjoy great success over the next decade. Still, due to the nature of the business, results will vary widely and unpredictably from one drug company to another. A volatile market like the one we expect for drug stocks will include winners and losers....

2 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Restaurant Brands, Shawcor, & Transcontinental

RESTAURANT BRANDS INTERNATIONAL INC. $74 (www.rbi.com) is a buy. The company has cut off support for operations in Russia. However, the franchised operators of 800 Burger King locations in that country have refused to close those outlets....

1 min read

Pat McKeough

Growth Stocks

European acquisition is an encouraging sign

Computer outsourcing firm CGI recently announced a new acquisition in Europe, its first major deal since the start of the COVID-19 pandemic. While using acquisitions to expand adds risk, this new purchase should help fuel the company’s growth, particularly as businesses increase their spending on cloud computing and cybersecurity.

CGI INC....

2 min read

Pat McKeough

Growth Stocks

Strong backlog a plus for Toromont

TOROMONT INDUSTRIES LTD. $118 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 82.4 million; Market cap: $9.7 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.3%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in eastern Canada....

1 min read

Pat McKeough

Growth Stocks

Metro plans to keep stores open

METRO INC. $73 is still a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 240.9 million; Market cap: $17.6 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.5%; TSINetwork Rating: Average; www.metro.ca) operates 950 grocery stores and 650 drugstores (mainly under the Jean Coutu banner) in Quebec, Ontario and New Brunswick.

Through their union, the 900 workers at the Metro warehouse in Toronto recently rejected a new contract and are now on strike....

1 min read

Pat McKeough

Growth Stocks

Sanctions on Russia benefit Nutrien

NUTRIEN LTD. $127 remains a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 570.7 million; Market cap: $72.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers.

The stock has jumped nearly 40% since the start of 2022....

1 min read

Pat McKeough

Growth Stocks

Loblaw makes a savvy buy

LOBLAW COMPANIES, $111.16, is a buy. The company (Toronto symbol L; Shares outstanding: 333.6 million; Market cap: $37.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.3%; www.loblaw.ca) has agreed to acquire Lifemark Health Group....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

OTIS WORLDWIDE CORP. $76 is a buy. The company (Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 425.0 million; Market cap: $32.3 billion; Price-to-sales ratio: 2.2; Dividend yield 1.3%; TSINetwork Rating: Average; www.otis.com) is the world’s largest maker of elevators and escalators.

In response to Russia’s invasion of Ukraine, Otis has stopped taking new elevator and escalator orders from customers in that country....

2 min read

Pat McKeough

Growth Stocks

RBI steps back from Russia

RESTAURANT BRANDS INTERNATIONAL INC. $57 is a buy. The company (New York symbol, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 460.3 million; Market cap: $26.2 billion; Price-to-sales ratio: 5.8; Dividend yield: 3.7%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No....

1 min read

Pat McKeough

Growth Stocks

Diageo expands whisky production

DIAGEO PLC ADR $198 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 577.6 million; Market cap: $114.4 billion; Price-to-sales ratio: 5.7; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.diageo.com) plans to build a new distillery in St....

1 min read

Pat McKeough

Testimonials

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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.