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

Home Capital prepared for new rules

HOME CAPITAL GROUP INC. $27 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 64.6 million; Market cap; $1.7 billion; Price-to-sales ratio: 2.9; Dividend yield: 3.9%; TSINetwork Rating: Average; www.homecapital.com) paid $23.2 million in 2015 for Canadian First Financial Bank (now called Home Bank)....

1 min read

Pat McKeough

Growth Stocks

Finning and Linamar ready for growth

These two leading industrial companies face weaker demand for their products. In response, Finning has cut costs, while Linamar has made acquisitions. We feel each strategy will lead to long-term gains.

FINNING INTERNATIONAL INC. $25 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.1 million; Market cap: $4.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.finning....

2 min read

Pat McKeough

Growth Stocks

Updating Canadian National Railway Co., Torstar Corp. and Bombardier Inc.

CANADIAN NATIONAL RAILWAY CO. $85 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 769.1 million; Market cap: $65.4 billion; Price-to-sales ratio: 5.4; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.cn.ca) has agreed to repurchase 2.7 million of its shares from a private seller at a discount to the market price....

1 min read

Pat McKeough

Growth Stocks

Updating Loblaw Companies, Power Corp. and Imperial Oil

LOBLAW COMPANIES $65.13 (Toronto symbol L; Shares outstanding: 404.5 million; Market cap: $26.6 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%; www.loblaw.ca) currently operates over 1,100 supermarkets across Canada. In March 2014, the company purchased the Shoppers Drug Mart chain of 1,300 drugstores.

The company continues to expand its popular President’s Choice brand of products....

2 min read

Pat McKeough

Growth Stocks

Toromont continues to raise its dividend

LISTEN: Click here to read the full article.

1 min read

Pat McKeough

Growth Stocks

Cash flow supports these high dividends

Toromont and Leon’s are riskier than many of our other dividend-paying recommendations. However, both are well-established leaders in their fields with strong growth prospects. Their steady cash flows should also let them continue raising shareholder value.

TOROMONT INDUSTRIES LTD....

3 min read

Pat McKeough

Growth Stocks

QSR boosts dividend on strong earnings

RESTAURANT BRANDS INTERNATIONAL INC. $43 (New York symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 467.6 million; Market cap: $20.1 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.6%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator, after McDonald’s (No....

1 min read

Pat McKeough

Growth Stocks

Updating Diebold Inc. and NCR Corp.

DIEBOLD INC. $23 (www.dieboldnixdorf.com) completed its purchase of German ATM (automated teller machine) maker Wincor Nixdorf AG in August 2016 for $1.8 billion in cash and shares. The purchase makes Diebold the world’s largest maker of ATMs, with roughly 35% of the global market....

1 min read

Pat McKeough

Growth Stocks

Updating Cintas Corp., J.P. Morgan Chase & Co. and Buckeye Partners L.P.

CINTAS CORP. $107 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 104.9 million; Market cap: $11.2 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.2%; TSINetwork Rating: Average; www.cintas.com) designs and makes uniforms, then sells them to one million businesses, mainly in North America....

1 min read

Pat McKeough

Growth Stocks

PepsiCo aims for healthier profits

PEPSICO INC. $107 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $149.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www. pepsico.com) continues to see weaker demand for its sodas and snack foods as consumers switch to healthier products.

In response, the company will cut the sugar in its soft drinks....

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.