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

Efficiency helps ease tariff troubles

LINAMAR CORP. $43 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.3 million; Market cap: $2.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.1%; TSINetwork Rating: Average; www.linamar.com) makes a variety of automotive parts, including cylinder heads and cylinder blocks....

1 min read

Pat McKeough

Growth Stocks

Sale shores up SNC’s balance sheet

SNC-LAVALIN GROUP INC. $19 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 175.6 million; Market cap: $3.3 billion; Price-to-sales ratio: 0.4; Dividend yield: 0.4%; TSINetwork Rating: Average; www.snclavalin.com) has completed the sale of a 10.01% stake in Highway 407, a toll highway in southern Ontario, to the Canada Pension Plan Investment Board (CPPIB).

As a result, the CPPIB now owns 50.01% of the highway....

1 min read

Pat McKeough

Growth Stocks

Savings will cut ShawCor’s debt

SHAWCOR LTD. $16 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.1 million; Market cap: $1.1 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.8%; TSINetwork Rating: Average; www.shawcor.com) acquired Edmonton-based ZCL Composites in April 2019....

1 min read

Pat McKeough

Growth Stocks

HighQ strengthens its legal offerings

THOMSON REUTERS CORP. $88 (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 500.5 million; Market cap: $44.0 billion; Price-to-sales ratio: 7.9; Divd. yield: 2.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) now focuses on the legal, and tax and accounting fields following the sale of 55% of its Refinitiv financial information business on October 1, 2018, for $17 billion (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

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

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.