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

Delay of new chips could hurt Nvidia

NVIDIA CORP. $262 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 606.0 million; Market cap: $158.8 billion; Price-to-sales ratio: 14.5; Dividend yield: 0.2%; TSINetwork Rating: Average; www.nvidia.com) has shot up 75% in the past year....

1 min read

Pat McKeough

Growth Stocks

A tax reprieve improves their prospects

The U.S. imposed a 2.3% tax on the sale of medical devices in 2013 as part of the Affordable Care Act. However, Congress suspended the tax in 2015, and has now extended that delay till 2020. It’s likely that Congress will ultimately kill the tax. That would give these three companies more cash for research and new growth projects.

BECTON DICKINSON & CO....

5 min read

Pat McKeough

Growth Stocks

Google wins key partner

ALPHABET INC. (Nasdaq symbols GOOG $1,170 [class C: non-voting] and GOOGL $1,184 [class A: one vote per share]; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 694.8 million; Market cap: $819.6 billion; Price-to-sales ratio: 7.0; No dividends paid; TSINetwork Rating: Above Average; www.abc.xyz) announced that its Google Internet search business has now formed a strategic alliance with Chinese online retailer JD.com Inc....

1 min read

Pat McKeough

Growth Stocks

Abobe takes on Amazon

ADOBE SYSTEMS INC. $256.13 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 492.5 million; Market cap: $124.4 billion; No dividends paid) has agreed to buy e-commerce software company Magento Commerce for $1.68 billion....

1 min read

Pat McKeough

Growth Stocks

High yen stalls profits

NISSAN MOTOR (ADR) $20.06 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs o/s: 2.1 billion; Market cap: $42.1 billion; Dividend yield: 2.9%) is Japan’s second-largest automaker, after Toyota.

For the year ended March 31, 2018, Nissan’s revenue rose 2.0%, to 12.0 trillion yen ($108.8 billion U.S.) from $11.7 trillion yen....

1 min read

Pat McKeough

Growth Stocks

WestJet clears an obstacle hurdle

WESTJET AIRLINES $18.85 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 123.3 million; Market cap: $2.2 billion; Dividend yield: 3.0%) and its pilots together have approved a settlement process to reach a first contract....

1 min read

Pat McKeough

Growth Stocks

Profits are up for these pricey picks

FIRSTSERVICE CORP. $96.33 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $3.4 billion; Dividend yield: 0.7%) set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015....

2 min read

Pat McKeough

Growth Stocks

Tims aims to match rivals

RESTAURANT BRANDS INTERNATIONAL $60.18 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares outstanding: 478.0 million; Market cap: $28.8 billion; Dividend yield: 3.0%) now plans to test all-day breakfast at a number of its Ontario Tim Hortons locations....

1 min read

Pat McKeough

Growth Stocks

One of these restaurant chains is a buy

DOMINO’S PIZZA $273.58 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos.com; Shares outstanding: 42.3 million; Market cap: $11.6 billion; Dividend yield: 0.8%) is the world’s largest chain of pizza stores offering takeout and delivery....

2 min read

Pat McKeough

Growth Stocks

Split yields 2 buys

WYNDHAM DESTINATIONS $47.90 (New York symbol WYND; TSI Rating: Extra Risk) (973-753-6000; www.wyndhamdestinations.com; Shares o/s: 99.5 million; Market cap: $4.8 billion; Divd....

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.