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

ADT links up with Google for growth

ADT keeps signing and retaining security customers. And one reason for its expanding market share are additions to its range of services. They include Wi-Fi-enabled security cameras and automated home solutions. Now, with ADT’s new smart-home partnership with Google-parent Alphabet, its prospects look even brighter.

ADT INC....

2 min read

Pat McKeough

Growth Stocks

An aggressive stock up 33% despite COVID

For the April 2020 issue, we welcomed FirstService to our Successful Investor Aggressive Growth Portfolio from its original spot as a Power Growth Investor pick. Since then, the stock has jumped 33% as the company takes advantage of the COVID-19 pandemic to make attractive acquisitions....

2 min read

Pat McKeough

Growth Stocks

Defence clients bolster CAE

CAE INC. $20 is still a buy for patient investors. The company (Toronto symbol CAE; Conservative Growth Payer Portfolio, Manufacturing & Industry sector; Shares o/s: 265.8 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.6; Divd....

1 min read

Pat McKeough

Growth Stocks

These fallen stars are still worth holding

These two former stock market darlings from the 1990s continue to shrink their operations as they focus on their more-promising businesses. That puts them in a better position to survive COVID-19 disruptions. Still, investors will need to be patient: their short-term prospects remain weak.

BLACKBERRY LTD....

2 min read

Pat McKeough

Growth Stocks

Home meals boost Metro

METRO INC., $59.83, is a buy. The stock (Toronto symbol MRU; Shares o/s: 251.8 million; Market cap: $14.8 billion; TSINetwork Rating: Average; Yield: 1.5%; www.metro.ca) lets you tap 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.

Metro continues to benefit as consumers eat more meals at home during the COVID-19 pandemic instead of going to restaurants.

In the three months ended July 4, 2020, sales improved 11.6%, to $5.86 billion from $5.23 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Innergex adds wind plants

INNERGEX RENEWABLE ENERGY $22.81, is a buy. The power generator (Toronto symbol INE; Shares o/s: 174.4 million; Market cap: $3.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.2%; www.innergex.com) operates 37 hydroelectric plants, 32 wind farms and six solar power fields....

1 min read

Pat McKeough

Growth Stocks

Texas Instruments looks beyond COVID-19

Despite COVID-19, Texas Instruments worked to maintain its production rate for computer chips. While demand fell sharply with the pandemic, the company’s decision—and its investments—means it should immediately benefit once demand returns.

TEXAS INSTRUMENTS INC....

2 min read

Pat McKeough

Growth Stocks

Broadridge lifts your dividend

BROADRIDGE FINANCIAL SOLUTIONS INC. $139 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 115.2 million; Market cap: $16.0 billion; Price-to-sales ratio: 3.5; Div. yield: 1.7%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

Broadridge is now raising its quarterly dividend by 6.5% with the October 2020 payment, to $0.575 a share from $0.54....

1 min read

Pat McKeough

Growth Stocks

Their essential services fuel your gains

FedEx and Cintas have soared in the past few months, even though the shutdown of businesses due to COVID-19 hurt their short-term earnings. That’s because demand for their services will rebound as the economy reopens, particularly as they help businesses cope with the pandemic.

FEDEX CORP....

2 min read

Pat McKeough

Growth Stocks

They are still buys years after their split

Conagra’s shares are up 13% this year. It continues to benefit as households stock up on food basics due to COVID-19. However, potato-processor Lamb Weston— Conagra spun it off in 2016—is down 27%. Still, that stock should rebound as more restaurants re-open following their pandemic shutdowns.

CONAGRA BRANDS INC....

2 min read

Pat McKeough

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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.