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.

More uranium for CCO

CAMECO CORP. $20.79 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956- 6200; www.cameco.com; Shares outstanding: 395.3 million; Market cap: $8.2 billion; Dividend yield 1.9%) has closed its $251-million purchase of Germany-based nuclear fuel broker Nukem Energy GmbH.

Nukem acts as an intermediary between uranium buyers and sellers....

1 min read

Pat McKeough

Growth Stocks

Hold on to ACI and Symantec

ACI WORLDWIDE $44.87 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402-334-5101; www.tsainc.com; Shares outstanding: 39.4 million; Market cap: $1.8 billion; No dividends paid) makes software for processing transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments....

2 min read

Pat McKeough

Growth Stocks

The Brick deal is a go

LEON’S FURNITURE LTD. $13.40 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 70.5 million; Market cap: $944.7 million; Dividend yield: 3.0%) has received approval from shareholders of The Brick (symbol BRK on Toronto) for its $700-million takeover of that company.

The Brick operates 230 stores across Canada, while Leon’s has 76 outlets in every province except B.C....

1 min read

Pat McKeough

Growth Stocks

Broadridge and Intact are bargains

BROADRIDGE FINANCIAL SOLUTIONS $22.97 (New York symbol BR: TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 122.2 million; Market cap: $2.8 billion; Dividend yield: 3.1%) serves the investment industry in three main areas: investor communications; securities processing; and transaction clearing....

2 min read

Pat McKeough

Growth Stocks

Slow quarter for Adobe

ADOBE SYSTEMS $37.88 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536- 6000; www.adobe.com; Shares outstanding: 495.1 million; Market cap: $18.8 billion; No dividends paid) reports that in the fourth quarter of its 2012 fiscal year, which ended November 30, 2012, its earnings fell 7.4%, to $307.9 million from $332.6 million a year earlier.

Before one-time items, earnings per share declined 9.0%, to $0.61 from $0.67, on more shares outstanding....

1 min read

Pat McKeough

Growth Stocks

Two buys for an economic rebound

RUSSEL METALS $29.20 (Toronto symbol RUS; TSINetwork Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 60.2 million; Market cap: $1.8 billion; Dividend yield: 4.8%) is one of North America’s largest metal distributors. The company serves its roughly 33,000 customers through 51 locations in Canada and 12 in the U.S.

In the three months ended September 30, 2012, Russel’s revenue rose 1.0%, to $712.6 million from $705.4 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

Churchill’s future is bright

THE CHURCHILL CORP. $8.95 (Toronto symbol CUQ; TSINetwork Rating: Speculative) (780-454-3667; www.churchillcorporation.com; Shares outstanding: 24.5 million; Market cap: $219.3 million; Dividend yield: 5.4%) reported earnings of $1.8 million, or $0.07 a share, in the three months ended September 30, 2012....

1 min read

Pat McKeough

Growth Stocks

New mines could send these two higher

ENDEAVOUR SILVER $7.86 (Toronto symbol EDR: TSINetwork Rating: Speculative) (1-877-685-9775; www.edrsilver.com; Shares outstanding: 99.5 million; Market cap: $782.1 million; No dividends paid) operates the Guanacevi and Bolanitos silver/gold mines in Mexico, as well as the recently acquired El Cubo project.

In the three months ended December 31, 2012, Endeavour’s revenue jumped 281% from a year earlier, to $66.7 million (all amounts except share prices in U.S....

2 min read

Pat McKeough

Growth Stocks

Yamana’s output keeps rising

YAMANA GOLD $17.14 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416- 815-0220; www.yamana.com; Shares outstanding: 752.0 million; Market cap: $12.9 billion; Dividend yield: 1.5%) saw its production rise 9% in 2012, to a record 1.2 million gold-equivalent ounces (including silver and copper) from 2011.

The company now forecasts production of 1.44 million to 1.6 million ounces in 2013, up 20% from 2012....

1 min read

Pat McKeough

Growth Stocks

Updating: AMAZON.COM, CARFINCO FINANCIAL GROUP, and IMPERIAL METALS.

AMAZON.COM $268.93 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 453.0 million; Market cap: $121.8 billion; No dividends paid) and ADOBE SYSTEMS $37.88 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 495.1 million; Market cap: $18.8 billion; No dividends paid) are part of a 12-company consortium that is buying bankrupt Eastman Kodak’s 1,100 digital-imaging patents for $525 million U.S.

Other members of the consortium include Apple, Google, Samsung, Research in Motion, Microsoft, China’s Huawei, Facebook and Fujifilm.

Under the deal, each of the 12 companies in the consortium will pay a portion of the total cost and then have access to all the patents.

Patents are increasingly important to technology firms like Amazon.com and Adobe because they let them protect their market shares from rivals....

2 min read

Pat McKeough

Testimonials

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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.

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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.

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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.