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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

Updates on Great-West Lifeco, Loblaw Companies & TransCanada Corp.

GREAT-WEST LIFECO $33.78 (Toronto symbol GWO; shares outstanding: 987.8 million; Market cap: $31.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%; www.greatwestlifeco.com) is Canada’s second-largest insurance company, after Manulife Financial.

The company plans to merge its three Canadian insurance subsidiaries (The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company) into a single firm—The Canada Life Assurance Company....

2 min read

Pat McKeough

Growth Stocks

NCR further expands beyond ATMs

NCR CORP. $29 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 118.9 million; Market cap: $3.4 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines (ATMs), cash registers, self-serve checkouts and kiosks for theatres and arenas.

The company recently paid an undisclosed amount for BEC....

1 min read

Pat McKeough

Growth Stocks

These fast-food operators focus on growth

YUM! BRANDS INC. $103 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 305.9 million; Market cap: $31.5 billion; Price-to-sales ratio: 5.6; Dividend yield: 1.6%; TSINetwork Rating: Average; www.yum.com) operates 48,000 restaurants in over 140 countries....

2 min read

Pat McKeough

Growth Stocks

Baxter raises its savings target

BAXTER INTERNATIONAL INC. $76 (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 511.1 million; Market cap: $38.8 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.0%; TSINetwork Rating: Average; www.baxter.com) makes a variety of medical devices, including intravenous pumps and kidney-dialysis equipment.

The company continues to benefit from a multi-year restructuring plan it began in 2015....

1 min read

Pat McKeough

Growth Stocks

Updating Diageo PLC ADR, Idexx Laboratories Inc. and Philips Electronics N.V. ADRs

DIAGEO PLC ADR $164 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 629.0 million; Market cap: $103.2 billion; Price-to-sales ratio: 5.3; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages....

2 min read

Pat McKeough

Growth Stocks

Big acquisition set to transform IFF

INTERNATIONAL FLAVORS & FRAGRANCES INC. $136 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 106.6 million; Market cap: $14.5 billion; Price-to-sales ratio: 3.7; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.iff.com) makes over 90,000 compounds that improve the taste of food and the smell of consumer products.

The company gets about 75% of its sales from outside of North America, and the negative impact of currency rates cut its sales by 2.1%, from $3.10 billion in 2014 to $3.02 billion in 2015....

2 min read

Pat McKeough

Growth Stocks

Updating Restaurant Brands International Inc., MTS Systems Corp. and Teradata Corp.

RESTAURANT BRANDS INTERNATIONAL INC. $66 (www.rbi.com) continues to spur sales at Tim Hortons with new initiatives. These include remodelling its stores and launching an all-day breakfast menu. Tim Hortons has also launched a new loyalty program....

1 min read

Pat McKeough

Growth Stocks

These leisure stocks are both buys

Studies show that both a spinoff and its parent company perform better than comparable firms for several years following their split. That’s especially so with industry leaders like these two.

WYNDHAM DESTINATIONS $43.13 (New York symbol WYND; TSI Rating: Extra Risk) (973-753-6000; www.wyndhamdestinations.com; Shares outstanding: 94.5 million; Market cap: $4.0 billion; Dividend yield: 4.2%) is the former Wyndham Worldwide (WYN)....

2 min read

Pat McKeough

Growth Stocks

Tims adds rewards

RESTAURANT BRANDS INTERNATIONAL $66.36 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 478.0 million; Market cap: $31.7 billion; Dividend yield: 3.0%) has 17,796 Burger King, 4,846 Tim Hortons (coffee and donuts) and 3,102 Popeyes Louisiana Kitchen (crispy fried chicken) outlets in over 100 countries.

The company continues to spur sales at Tim Hortons with new initiatives....

1 min read

Pat McKeough

Growth Stocks

Updating Stuart Olson Inc., Goodyear Tire & Rubber Co. and WestJet Airlines

STUART OLSON INC. $4.07 (Toronto symbol SOX; TSINetwork Rating: Speculative) (780-454-3667; www.stuartolson.com; Shares o/s: 27.8 million; Market cap: $113.1 million; Dividend yield: 5.9%) recently announced $120 million in new contracts.

Its Industrial Group has secured a new master services agreement with an existing customer, to extend its contract for construction services to three additional Ontario regions....

2 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

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.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
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.

Chuck J.
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.

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.