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

#1 picks to power your 2021 gains: ResMed, Merck & Co. and Alimentation Couche-Tard

For 2021, we have singled out three growth stocks that brighten your prospects for the year ahead.

All three are in a strong position to weather the current wave of COVID-19. Each is also poised for solid gains as new vaccines help kick-start global economic growth.

RESMED INC....

4 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Restaurant Brands, Linamar and Toromont

RESTAURANT BRANDS INTERNATIONAL INC. $80 (www.rbi.com) is still a buy. The stock has dropped 4% in the past year as COVID-19 lockdowns forced the company to close most of its fast-food outlets to in-store service. However, Restaurant Brands should re-open its stores in 2021 as more people receive COVID-19 vaccines....

1 min read

Pat McKeough

Growth Stocks

Three key updates to spur your 2021 success: Saputo, ShawCor and Molson Coors

SAPUTO INC. $36 is still a hold. The company (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 408.7 million; Market cap: $14.7 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese....

2 min read

Pat McKeough

Growth Stocks

COVID-19 clouds Maple Leaf’s outlook

Maple Leaf Foods continues to benefit as COVID-19 lockdowns keep people eating at home. The company is also broadening its product lineup with plant-based meats. However, rising costs to protect its facilities from COVID-19 outbreaks dampen its short-term outlook.

MAPLE LEAF FOODS INC....

1 min read

Pat McKeough

Growth Stocks

Vaccines brighten their 2021 prospects: Wyndham Hotels and Wyndham Destinations

The coronavirus pandemic has forced the cancellation of most vacation plans. However, reopening of economy will spur strong demand for domestic travel—especially for lodgings that vacationers can reach by car. That already helped both Wyndham Destinations, and Wyndham Hotels and Resorts rebound from their March 2020 lows....

2 min read

Pat McKeough

Growth Stocks

We did it again ... with another big takeover gain

When we first recommended Slack in our September 2019 issue at $30.80 a share, we thought it would make a great takeover candidate for a tech giant. Now, Salesforce.com (CRM on New York) has agreed to buy Slack for $27.7 billion. This has handed our subscribers a gain of over 38%—in just over a year!

SLACK TECHNOLOGIES INC....

1 min read

Pat McKeough

Growth Stocks

WW better taps a key demographic

WW INTERNATIONAL $28.95 (Nasdaq symbol WW; TSINetwork Rating: Extra Risk) (www.ww.com; Shares o/s: 68.1 million; Market cap: $2.0 billion; No dividends paid) has expanded its weight-loss services to include “Wellness that works” programs....

1 min read

Pat McKeough

Growth Stocks

Build on your gains with these 2020 winners

We added both Twilio and Stitch Fix to Power Growth Investor for the first time earlier this year. And both have put on stellar performances for our readers. Twilio is up 87.2% since we first recommended it in our June 2020 issue at $187.42. Stitch Fix has gained a whopping 158.5% for our subscribers since we first recommended it in Power Growth Investor in the January 2020 issue at $25.70.

Both benefited from increased demand during the pandemic....

2 min read

Pat McKeough

Growth Stocks

Facebook builds on a key partnership

FACEBOOK INC. $275.67, is a buy. Through your shares (Nasdaq symbol FB; TSINetwork Rating: Above Average) (facebook.com; Shares o/s: 2.4 billion; Market cap: $784.9 billion; No divds.) you’re buying into the world’s largest social media network....

1 min read

Pat McKeough

Growth Stocks

Time to benefit from TJX’s proven formula

TJX’s shares took a big drop, along with most retailers, in March 2020 as COVID-19 lockdowns took hold. However, they have since surged back, and are now at all-time highs.

Many traditional bricks-and-mortar retailers will continue to struggle against the COVID-10-spurred onslaught of online shopping....

2 min read

Pat McKeough

Testimonials

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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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Financial Post Columnist
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I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

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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.