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

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

Growth Stocks

Couche-Tard builds niche

ALIMENTATION COUCHE-TARD $81.15 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 564.4 million; Market cap: $45.8 billion; Dividend yield: 0.6%) continues to expand into the market for cannabis....

1 min read

Pat McKeough

Growth Stocks

Broadridge’s growth plans add appeal

BROADRIDGE FINANCIAL SOLUTIONS $131.27 (New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares o/s: 116.1 million; Market cap: $15.0 billion; Dividend yield: 1.7%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

In the quarter ended June 30, 2019, revenue fell 8.3%, to $1.21 billion from $1.32 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

SYMC split unlocks value

SYMANTEC CORP. $23.71 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares o/s: 617.5 million; Market cap: $14.7 billion; Divd. yield: 1.3%) jumped as high as $26.07 in early July 2019 on reports that it was in advanced talks with a potential buyer for the company, Broadcom Inc....

1 min read

Pat McKeough

Growth Stocks

Our latest buy is a new stock issue (!)

We generally advise against investing in new issues, for one simple reason: new investments come to market when it’s a good time for the company or its insiders to sell, but that may not be a good time for you to buy. In fact, it usually isn’t.

However, we think that Slack Technologies is now well-funded with a popular product and an expanding blue-chip client list....

2 min read

Pat McKeough

Growth Stocks

Updating Cenovus Energy Inc., Saputo Inc. and Restaurant Brands International Inc.

ENOVUS ENERGY INC. $12 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.2 billion; Market cap: $14.4 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.7%; TSINetwork Rating: Extra Risk; www.cenovus.com) produced 443,318 barrels (84% oil, 16% natural gas) in the second quarter of 2019....

2 min read

Pat McKeough

Growth Stocks

Updating Tennant Co., Teradata Corp. and Idexx Laboratories Inc.

TENNANT CO. $66 (www.tennantco.com) recently paid $26.9 million for Gaomei Cleaning Equipment Co. Based in China, Gaomei makes a wide range of vacuum cleaners, high-pressure washers, sweepers and floor scrubbers. The purchase should give the company greater access to Chinese business clients....

1 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.