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

Ford Motor Co. $14 - New York symbol F

FORD MOTOR CO. $14 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $54.6 billion; Priceto- sales ratio: 0.4; Dividend yield: 4.3%; TSINetwork Rating: Extra Risk; www.ford.com) sold 240,109 cars and trucks in the U.S....

1 min read

Pat McKeough

Growth Stocks

Agilent Technologies Inc. $47

AGILENT TECHNOLOGIES INC. $47 (www.agilent.com) makes testing equipment for medical research laboratories. The company recent agreed to buy iLabs. This Massachusetts-based firm makes software that lets universities, hospitals and research firms book time in shared labs....

1 min read

Pat McKeough

Growth Stocks

Monsanto Co. $107

MONSANTO CO. $107 (www.monsanto.com) develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also makes weed- and pest-control products. German chemical and pharmaceutical maker Bayer AG recently increased its all-cash takeover offer for Monsanto, to $125.00 a share from $122.00....

1 min read

Pat McKeough

Growth Stocks

Earnings lift dividend

ALIMENTATION COUCHETARD $59.34 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard. com; Shares outstanding: 567.4 million; Market cap: $32.9 billion; Dividend yield: 0.5%) operates 10,547 convenience stores throughout North America and Europe....

1 min read

Pat McKeough

Growth Stocks

Restructuring prepares them for volatility

WAJAX CORP. $14.80 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:20.0 million; Market cap: $299.5 million; Dividend yield: 6.8%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts, such as ball bearings, motors, hoses and fittings, and power systems, including diesel engines and transmissions.

The company’s customers are spread across the natural resources, construction, manufacturing and transportation industries.

In the three months ended March 31, 2016, Wajax’s clients in mining and oil and gas made fewer purchases....

2 min read

Pat McKeough

Growth Stocks

Gains despite tough market

ALARMFORCE INDUSTRIES $11.23 (Toronto symbol AF; TSINetwork Rating: Extra Risk) (1-800-267-2001; www.alarmforce. com; Shares outstanding: 11.6 million; Market cap: $132.1 million; Dividend yield: 1.6%) sells two-way voicealarm and monitoring services to homeowners in Canada and the U.S....

1 min read

Pat McKeough

Growth Stocks

Good prospects—but expensive right now

RESTAURANT BRANDS INTERNATIONAL $41.68 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 467.0 million; Market cap: $19.5 billion; Dividend yield: 1.4%) is the world’s third-largest fast-food operator, after McDonald’s (No.1) and Yum Brands (No.2), with 4,438 Tim Hortons stores and 15,008 Burger King outlets in 100 countries.

If you exclude restructuring costs and other unusual items, the company earned $142.1 million in the three months ended March 31, 2016 (all amounts except share price and market cap in U.S....

2 min read

Pat McKeough

Growth Stocks

Fair Isaac adds a niche

FAIR ISAAC $118.20 (New York symbol FICO; TSINetwork Rating: Average) (415-472- 2211; www.fairisaac.com; Shares outstanding: 31.2 million; Market cap: $3.7 billion; Dividend yield: 0.1%) has bought QuadMetrics, a firm that uses analytical data to rate any organization’s cybersecurity risk....

1 min read

Pat McKeough

Growth Stocks

Calian profits from prisons

CALIAN GROUP $19.84 (Toronto symbol CGY; TSINetwork Rating: Speculative) (613- 599-8600; www.calian.com; Shares outstanding: 7.4 million; Market cap: $146.9 million; Dividend yield: 5.7%) continues to add outsourcing contracts focused on health care services....

1 min read

Pat McKeough

Growth Stocks

Mitel rises on failed deal

MITEL NETWORKS $9.03 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613- 592-2122; www.mitel.ca; Shares outstanding: 121.3 million; Market cap: $1.1 billion; No dividends paid) makes technology that integrates landlines and mobile phones. The company also offers call-centre and videoconferencing products....

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.