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

Nutrien ready to accelerate its gains

We feel Nutrien’s shares are poised for big gains over the next few years. That’s despite moving mostly sideways since Agrium and Potash Corp. merged to form the company in January 2018.

The stock’s future growth will come as the world’s population continues to expand—from today’s roughly 7.7 billion people to likely 10 billion by 2050....

4 min read

Pat McKeough

Growth Stocks

These Canadian blue chips have gains ahead

LOBLAW COMPANIES $73.77 (Toronto symbol L; Shares outstanding: 366.1 million; Market cap: $27.0 billion; TSINetwork Rating: Above Average; Dividend yield: 1.7%; www.loblaw.ca) operates 1,085 supermarkets and 1,337 Shoppers Drug Mart pharmacies across Canada.

Excluding one-time items....

2 min read

Pat McKeough

Growth Stocks

Lower costs set Baxter up for higher profits

BAXTER INTERNATIONAL INC. $87 (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 510.6 million; Market cap: $44.4 billion; Price-to-sales ratio: 4.0; Dividend yield: 1.0%; TSINetwork Rating: Average; www.baxter.com) makes a variety of medical devices, including intravenous pumps and kidney-dialysis equipment....

2 min read

Pat McKeough

Growth Stocks

Quaker completes big acquisition

QUAKER CHEMICAL CORP. $157 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 13.3 million; Market cap: $2.1 billion; Price-to-sales ratio: 3.3; Dividend yield: 1.0%; TSINetwork Rating: Average; www.quakerchem.com) closed its acquisition of rival Houghton International Inc....

1 min read

Pat McKeough

Growth Stocks

Spicemaker looks pricey after jump

MCCORMICK & CO. INC. $163 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 132.5 million; Market cap: $21.6 billion; Price-to-sales ratio: 4.0; Divd. yield: 1.4%; TSINetwork Rating: Average; www.mccormick.com) acquired several condiment brands from Reckitt Benckiser Group plc....

1 min read

Pat McKeough

Growth Stocks

ATM makers adapt to a cashless world

Demand for ATMs has slowed considerably in the past few years, as consumers increasingly pay for purchases with credit cards instead of cash. In response, these top ATM makers has expanded into other businesses like self-serve checkout terminals and software.

We still like the outlook for both, and see NCR as best for new buying at this time.

NCR CORP....

2 min read

Pat McKeough

Growth Stocks

IFF hikes dividend despite probe

INTERNATIONAL FLAVORS & FRAGRANCES INC. $109 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares o/s: 106.6 million; Market cap: $11.6 billion; Price-to-sales ratio: 2.5; Divd. yield: 2.8%; TSINetwork Rating: Above Average; www.iff.com) completed its acquisition of Frutarom, an Israeli firm that makes 70,000 flavouring products in October 2018....

1 min read

Pat McKeough

Growth Stocks

Niche helps Diageo hedge its bets

DIAGEO PLC ADR $169 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 629.0 million; Market cap: $106.3 billion; Price-to-sales ratio: 7.9; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages....

1 min read

Pat McKeough

Growth Stocks

Investments keep its outlook bright

Alphabet’s class A shares have soared 287% since we first recommended the stock as a buy in our August 2011 issue at $303.50 (adjusted for stock splits). That growth is fuelled by advertisers, who continue to move their spending online to better target prospective customers.

The company’s success (Google now control 70% of the global Internet search market) has prompted calls for greater regulation of its activities....

4 min read

Pat McKeough

Growth Stocks

WW’s membership flourishes again

WEIGHT WATCHERS INTERNATIONAL $28.94 (Nasdaq symbol WW; TSINetwork Rating: Extra Risk) (212-589-2700; www.ww.com; Shares o/s: 67.0 million; Market cap: $2.0 billion; No dividends paid) has expanded its weight-loss services to include “Wellness that works” programs....

2 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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Financial Post Columnist
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Subscriber since 1996. Inner Circle Member Since 2006
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Walter H.
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.