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

Future shines for these 2 consumer stocks

LOBLAW COMPANIES $69.79 (Toronto symbol L; Shares outstanding: 403.8 million; Market cap: $28.2 billion; TSINetwork Rating: Above Average; Dividend yield: 1.5%; www.loblaw.ca) operates over 1,090 supermarkets and 1,325 Shopper Drug Mart pharmacies across Canada.

In the three months ended October 8, 2016, the company’s sales rose 1.4%, to $14.1 billion from $13.9 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Alphabet maintains its strong appeal

Dear client,

Despite Alphabet’s strong revenue and earnings growth, the stock has risen just 4% since we named it our top Aggressive pick for 2016. The S&P 500 Index has jumped 16% in that time.

Alphabet’s slower rise is partly due to its complex ownership structure, which insiders use to maintain control....

5 min read

Pat McKeough

Growth Stocks

These tech stocks have hit new highs

In addition to Alphabet, we also like the outlook for these three tech leaders. However, after their recent price gains, only two are buys.

ADOBE SYSTEMS INC. $104 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 497.2 million; Market cap: $51.7 billion; Price-to-sales ratio: 9.4; No dividends paid since June 2005; TSINetwork Rating: Average; www....

5 min read

Pat McKeough

Growth Stocks

Buy this parent and hold onto its spinoff

In November 2014, the old Agilent set up its Keysight subsidiary as a separate company and gave its shareholders one Keysight share for every two Agilent shares they held.

Since then, Keysight is up 12% while the new Agilent is down 15%. We still like the outlook for both companies, but see Agilent as the better buy for now....

2 min read

Pat McKeough

Growth Stocks

Updating L Brands Inc., Yum! Brands Inc. & Philips Electronics N.V. ADRs

L BRANDS INC. $72 (New York symbol LB; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 286.0 million; Market cap: $20.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.3%; TSINetwork Rating: Average; www.lb.com) owns lingerie chain Victoria’s Secret as well as Bath & Body Works outlets....

2 min read

Pat McKeough

Growth Stocks

Price jump adds to Idexx’s risk

IDEXX LABORATORIES INC. $120 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 89.7 million; Market cap: $10.8 billion; Price-to-sales ratio: 6.2; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect diseases in pets....

1 min read

Pat McKeough

Growth Stocks

Here’s 2 of manufacturing’s highest yields

Both Russel Metals and Calian are growth stocks, but they offer income investors a high, sustainable yield. The two firms have strong balance sheets, and those high payouts appear safe.

RUSSEL METALS $25 (Toronto symbol RUS; High- Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares o/s: 61.7 million; Market cap: $1.5 billion; Price-to-sales ratio: 0.6; Dividend yield: 6.1%; Dividend Sustainability Rating: Above Average; russelmetals....

2 min read

Pat McKeough

Growth Stocks

These REITs offer stable high payouts

H&R REAL ESTATE INVESTMENT TRUST $21 (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Units o/S: 283.9 million; Market cap: $6.0 billion; Price-to-sales ratio: 5.4; Dividend Sustainability Rating: Above Average; Dividend yield: 6.6%; www.hr-reit.com) owns or has a stake in 515 office buildings, industrial properties and shopping malls across Canada and the U.S....

2 min read

Pat McKeough

Growth Stocks

Steady increases for Pfizer dividends

LISTEN: Click here to read the full article.

1 min read

Pat McKeough

Growth Stocks

Calian revenue ticks upward

LISTEN: Click here to read the full article.

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.