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

Hold onto these two software leaders

Adobe and Fair Isaac have surged to record highs in the past year. As a result, their shares are expensive in relation to their projected earnings. We feel investors should delay new buying until those earnings catch up to their prices.

ADOBE SYSTEMS INC....

2 min read

Pat McKeough

Growth Stocks

Quaker investors approve merger

QUAKER CHEMICAL CORP. $150 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 13.3 million; Market cap: $2.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 0.9%; TSINetwork Rating: Average; www.quakerchem.com) makes lubricants and chemicals that keep mechanical parts from rusting.

The company’s shareholders recently approved Quaker’s acquisition of Houghton International Inc....

1 min read

Pat McKeough

Growth Stocks

Chipmaker’s dividend jumps 24%

TEXAS INSTRUMENTS INC. $96 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 990.0 million; Market cap: $95.0 billion; Price-to-sales ratio: 6.7; Dividend yield: 2.6%; TSINetwork Rating: Average; www.ti.com) is a leading maker of analog chips that convert inputs, such as touch, sound and pressure, into electronic signals that computers can understand.

With the November 2017 payment, the company will raise its quarterly dividend by 24.0%, to $0.62 a share from $0.50....

1 min read

Pat McKeough

Growth Stocks

Big tech firms prepare for their next surge

These four technology giants continue to see falling demand for their traditional products and services. In response, they are shifting their focus to faster-growing fields.

Those moves should help to usher in a new growth phase for each of them....

7 min read

Pat McKeough

Growth Stocks

Acquisitions add to Stanley’s gains

STANLEY BLACK & DECKER INC. $164 (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.2 million; Market cap: $25.1 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.5%; TSINetwork Rating: Average; www.stanleyblackanddecker....

4 min read

Pat McKeough

Growth Stocks

Shopify is now a hold

SHOPIFY INC. $123.30 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613- 241-2828; www.shopify.ca; Shares o/s: 90.7 million; Market cap: $12.2 billion; No dividend) took a drop in early October after Citron Research— a stock commentary website and short seller—issued a report criticizing the company’s sales development practices.

Citron has had some success in the past with its short selling, most notably with Valeant Pharmaceuticals....

1 min read

Pat McKeough

Growth Stocks

Good news for SYMC

SYMANTEC CORP. $32.15 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527- 8000; www.symantec.com; Shares o/s: 614.5 million; Market cap: $19.8 billion; Divd. yield: 0.9%) jumped in September 2017 after the massive cyberattack at credit scorer Equifax....

1 min read

Pat McKeough

Growth Stocks

Buyback at a discount

ALIMENTATION COUCHE-TARD $59.11 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; couchetard.com; Shs. o/s: 567.4 million; Market cap: $33.7 billion; Divd. yield: 0.6%) will repurchase 4.3 million of its Class B voting shares from Metro Inc....

1 min read

Pat McKeough

Growth Stocks

U.S. tech leaders: 1 buy, 1 hold

BROADRIDGE FINANCIAL SOLUTIONS $83.61 New York symbol BR; TSINetwork Rating: Average) (201- 714-3000; www.broadridge.com; Shares o/s: 116.5 million; Market cap: $9.7 billion; Dividend yield: 1.8%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

Investor communications makes up 72% of the company’s revenue....

2 min read

Pat McKeough

Growth Stocks

Goodyear adds niche

GOODYEAR TIRE & RUBBER CO. $33.39 (Nasdaq symbol GT; TSINetwork Rating: Average) (330-796-2122; www.goodyear.com; Shares outstanding: 251.8 million; Market cap: $8.4 billion; Dividend yield: 1.7%) will buy Germany’s Ventech Systems GmbH, a leader in automated tire inspection technology.

As vehicles, including buses, trucks and cars, drive over Ventech’s PneuScan device, the system measures their tire pressure, tread depth and vehicle weight.

With the Ventech acquisition, Goodyear moves further into the fleet management business....

1 min read

Pat McKeough

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Investors Association of Canada
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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.