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

Smart growth strategy gives CGI an edge

CGI GROUP INC. $63 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 299.8 million; Market cap: $18.9 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services....

2 min read

Pat McKeough

Growth Stocks

Our top REIT cuts its risk

RIOCAN REAL ESTATE INVESTMENT TRUST $27 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 325.5 million; Market cap: $8.8 billion; Price-to-sales ratio: 7.5; Dividend yield: 5.2%; TSINetwork Rating: Average; www.riocan....

1 min read

Pat McKeough

Growth Stocks

Updates on Loblaw Companies, Newmont Mining and Power Corp.

LOBLAW COMPANIES $67.82 (Toronto symbol L; Shares outstanding: 403.5 million; Market cap: $27.4 billion; TSINetwork Rating: Above Average; Dividend yield: 1.5%; www.loblaw.ca) plans to reduce its greenhouse gas emissions 20% by 2020, and 30% by 2030. Those targets are in line with recent federal and provincial government goals.

To reach its targets, the company will install new refrigeration equipment that uses carbon dioxide as a refrigerant instead of harmful hydrofluorocarbons....

2 min read

Pat McKeough

Growth Stocks

Profit jumps for TXN

TEXAS INSTRUMENTS INC. $79 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 996.0 million; Market cap: $78.7 billion; Price-to-sales ratio: 6.0; Dividend yield: 2.5%; TSINetwork Rating: Average; www.ti.com) is a leading maker of analog chips....

1 min read

Pat McKeough

Growth Stocks

Insurance offsets T. Rowe’s mistake

T. ROWE PRICE GROUP INC. $74 (Nasdaq symbol TROW; Aggressive Growth and Income Portfolios, Finance sector; Shares outstanding: 248.2 million; Market cap: $18.4 billion; Price-to-sales ratio: 4.3; Dividend yield: 2.9%; TSINetwork Rating: Average; www.troweprice.com) sells mutual funds and wealth management services.

Through the mutual funds it manages, T....

1 min read

Pat McKeough

Growth Stocks

Monsanto pledges more U.S. jobs

MONSANTO CO. $111 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 436.8 million; Market cap: $48.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.monsanto.com) develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies....

1 min read

Pat McKeough

Growth Stocks

Updating Archer Daniels Midland Co., Adobe Systems Inc. and Newmont Mining Corp.

ARCHER DANIELS MIDLAND CO. $45 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 587.6 million; Market cap: $26.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, canola, flax seed, peanuts and other crops to make a variety of food ingredients such as flour, oils and sweeteners....

2 min read

Pat McKeough

Growth Stocks

Updating Cintas Corp. and Restaurant Brands International Inc.

CINTAS CORP. $117 (www.cintas.com) designs and makes uniforms, then sells them to 900,000 businesses, mainly in North America. It also offers related products and services such as first-aid kits and office cleaning. In the second quarter, ended November 30, 2016, earnings rose 11.7%, to $1.15 a share from $1.03 a year earlier....

1 min read

Pat McKeough

Growth Stocks

Here are our top picks for 2017

We have lots of attractive long-term buys among the stocks we cover, and we’re positive on the long-term outlook for stocks. We feel just as strongly about the need to diversify.

That’s why we’ve chosen three top picks for 2017 from our Stock Pickers Digest recommendations....

3 min read

Pat McKeough

Growth Stocks

Both spinoff and parent are holds

FIRSTSERVICE CORP. $65.03 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.7 million; Market cap: $2.3 billion; Dividend yield: 0.9%) set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015.

Since the spinoff, FirstService has carried on with its residential property management and its commercial and residential property improvement services.

In the third quarter, ended September 30, 2016, the company’s revenue rose 17.0%, to $409.1 million from $349.5 million a year earlier (all figures except share price in U.S....

2 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.

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Investors Association of Canada
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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.