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

We still like Symantec

SYMANTEC CORP. $22.35 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares outstanding: 621.5 million; Market cap: $13.9 billion; Dividend yield: 1.3%) dropped to as low as $18.85 recently after the company unexpectedly said it was looking into some financial issues....

1 min read

Pat McKeough

Growth Stocks

Updating Dream Office REIT, Amazon.com and FirstService Corp.

DREAM OFFICE REIT $24.55 (Toronto symbol D.UN; TSINetwork Rating: Extra Risk) (416-365-3535; www.dream.ca/office; Units outstanding: 70.1 million; Market cap: $1.9 billion; Dividend yield: 4.1%) owns and manages 42 office and retail properties in major Canadian cities, comprising 8.5 million square feet....

2 min read

Pat McKeough

Growth Stocks

Chipotle is on the rise

CHIPOTLE MEXICAN GRILL $444.67 (New York symbol CMG; TSINetwork Rating: Extra Risk) (303-595-4000; www.chipotle.com; Shares o/s: 27.8 million; Market cap: $12.4 billion; No dividends paid) is now up 80% from its February 2018 low of $247.52. The gains came from improved financial results, but also from optimism about the company’s new CEO

In the quarter ended March 31, 2018, sales rose 7.4%, to $1.15 billion from $1.07 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

IoT drives Sierra Wireless

SIERRA WIRELESS $23.34 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 36.0 million; Market cap: $839.8 million; No dividend. paid) makes digital components that connect products to the Internet....

1 min read

Pat McKeough

Growth Stocks

Both these growth stocks are buys

WESTJET AIRLINES $19.90 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 123.3 million; Market cap: $2.3 billion; Dividend yield: 2.8%) serves 104 destinations in North America, Central America, the Caribbean and Europe....

2 min read

Pat McKeough

Growth Stocks

Toromont graduates

Sometimes growth stocks mature to the point where we feel they’re too conservative for Stock Pickers Digest.

It’s why we will now shifted our coverage of TOROMONT INDUSTRIES LTD. $57.83 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667-5511; www.toromont.com; Shares outstanding: 78.3 million; Market cap: $4.7 billion; Dividend yield: 1.6%) to The Successful Investor.

We still see the stock as a buy, but one that’s better suited for our newsletter with a conservate focus.

Toromont distributes a broad range of Caterpillar machinery and other heavy equipment....

1 min read

Pat McKeough

Growth Stocks

We did it again!

MITEL NETWORKS $14.09 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613-592-2122; www.mitel.ca; Shares outstanding: 121.2 million; Market cap: $1.7 billion; No dividends paid) has attracted a friendly $11.15 U.S.-a-share ($14.35 Cdn.) takeover bid from an investor group led by private-equity firm Searchlight Capital Partners. The offer is for an all-cash sale.

We first added Mitel in our March 2014 issue of Stock Pickers Digest at $9.47....

1 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

BROADRIDGE FINANCIAL SOLUTIONS $115.09 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 116.7 million; Market cap: $13.6 billion; Dividend yield: 1.3%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

Broadridge is trading near new all-time highs this week after reporting stronger earnings in the latest quarter.

For the three months ended March 31, 2018, revenue rose 6.2%, to $1.07 billion from $1.01 billion a year earlier.

Excluding one-time items, the company earned $121.4 million, or $1.00 a share....

1 min read

Pat McKeough

Growth Stocks

Pork shortage hurts Maple Leaf

MAPLE LEAF FOODS INC. $29 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 126.7 million; Market cap: $3.7 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells Maple Leaf and Schneider fresh and prepared meats.

Sales in the latest quarter fell 0.8%, to $817.5 million from $811.2 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Asset sale could help pay down debt

BOMBARDIER INC. (Toronto symbols BBD.A $4.20 and BBD.B $4.21; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.4 billion; Market cap: $10.1 billion; Price-to-sales ratio: 0.7; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) is the world’s third-largest maker of commercial aircraft, after Boeing (No....

1 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.