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

Two growth stocks with gains ahead

AGT FOOD & INGREDIENTS $32.70 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.agtfoods.com; Shares outstanding: 23.9 million; Market cap: $782.3 million; Dividend yield: 1.8%) buys, processes and distributes a range of pulses—peas, beans, lentils and chickpeas—as well as other specialty crops.

Based in Saskatchewan, the company owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and another in South Africa.

In the three months ended December 31, 2016, AGT’s earnings per share rose 12.9%, to $0.72 from $0.64 a year earlier....

2 min read

Pat McKeough

Growth Stocks

Aimia hikes its dividend

AIMIA INC. $8.72 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-897-6800; www.aimia.com; Shares o/s: 152.3 million; Market cap: $1.3 billion; Dividend yield: 9.2%) owns and operates Aeroplan; it’s Canada’s largest loyalty program, with over 5 million members.

In the quarter ended December 31, 2016, Aimia reported earnings of $35.1 million, or $0.20 a share....

1 min read

Pat McKeough

Growth Stocks

High dollar is still a risk

ADOBE SYSTEMS $126.21 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408536-6000; www.adobe.com; Shares o/s: 494.1 million; Market cap: $62.0 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format....

1 min read

Pat McKeough

Growth Stocks

Updating Broadridge Financial, Nissan Motor (ADR), IAMGold and Chipotle Mexican Grill

BROADRIDGE FINANCIAL $68.36 (New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www. broadridge.com; Shares outstanding: 118.3 million; Market cap: $8.0 billion; Dividend yield: 1.9%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

The company has now announced another acquisition....

2 min read

Pat McKeough

Growth Stocks

SHOP adds more clients

SHOPIFY INC. $88.91 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613241-2828; www.shopify.ca; Shares o/s: 88.9 million; Market cap: $7.9 billion; No dividend) offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels....

1 min read

Pat McKeough

Growth Stocks

Weight Watchers is the better buy

WYNDHAM WORLDWIDE $83.55 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973-753-6000; www.wyndhamworldwide.com; Shares outstanding: 105.0 million; Market cap: $8.7 billion; Dividend yield: 2.8%) is one of the world’s largest hospitality companies, with 8,040 franchised hotels around the world.

The company also manages vacation resorts, rental properties, luxury clubs and timeshares....

2 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

INTACT FINANCIAL $93.69 (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (416-341-1464; www.intactfc.com; Shares outstanding: 131.0 million; Market cap: $12.4 billion; Dividend yield: 2.7%) is Canada’s largest provider of property and casualty insurance....

1 min read

Pat McKeough

Growth Stocks

Popeyes looks like a good fit

RESTAURANT BRANDS INTERNATIONAL INC. $73 (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 460.9 million; Market cap: $33.6 billion; Price-to-sales ratio: 8.2; Dividend yield: 1.3%; 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

Acquisitions add risk for GWO

GREAT-WEST LIFECO INC. $37 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; s/o: 986.4 million; Market cap: $36.5 billion; p/s ratio: 1.9; Divd. Yield: 4.0%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest insurance company, after Manulife Financial....

1 min read

Pat McKeough

Growth Stocks

Saputo’s purchase will cut costs

SAPUTO INC. $46 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 392.8 million; Market cap: $18.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese....

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.