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

Two blue-chips for safety-conscious investors

Here are two of our top safety-conscious recommendations. Both have strong growth ahead. Look for that to spur their share prices and your returns.

LOBLAW COMPANIES, $147.30, is a buy. The retailer (Toronto symbol L; Shares outstanding: 310.4 million; Market cap: $45.5 billion; TSINetwork Rating: Above Average; Dividend yield: 1.2%; www.loblaw.ca) operates 1,104 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills....

2 min read

Pat McKeough

Growth Stocks

Updating your Income stocks: Quaker Chemical, AT&T & McCormick

QUAKER CHEMICAL CORP. $199 (www.quakerhoughton.com) remains a buy for long-term gains. The company completed its acquisition of rival specialty chemicals maker Houghton International in August 2019....

1 min read

Pat McKeough

Growth Stocks

Buy this superstar that’s out of the limelight

A key part of our three-pronged approach to investing is avoiding companies in the media limelight (the other two parts are diversifying your holdings across the five main economic sectors and sticking to well-established companies). A good example is uniform rental firm Cintas, which has soared over 200% in the past five years....

2 min read

Pat McKeough

Growth Stocks

Good quarter for Mondelez

MONDELEZ INTERNATIONAL INC. $74 is a buy. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $103.6 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.mondelezinternational.com) mainly makes snack foods such as cookies, chocolate bars and gum.

Mondelez recently sold its gum businesses in the U.S., Canada and Europe for $1.4 billion....

1 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns: Philips, Sherin-Williams & Stanley Black

PHILIPS ELECTRONICS N.V. ADRs $20 is a hold. The company (New York symbol PHG; Conservative Growth Portfolio, Manufacturing sector; ADRs outstanding: 906.4 million; Market cap: $18.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.2%; TSINetwork Rating: Average; www.philips.com) has stopped selling its sleep apnea and ventilator machines in the U.S....

2 min read

Pat McKeough

Growth Stocks

Sony plans to unlock more value

SONY GROUP CORP. ADRs $87 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $113.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 0.6%; TSINetwork Rating: Average; www.sony.com) plans to sell shares in its financial services business to the public in October 2025....

1 min read

Pat McKeough

Growth Stocks

Savvy purchase for Motorola

MOTOROLA SOLUTIONS INC. $325 is a buy. The maker of two-way radios and high-definition surveillance systems (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.1 million; Market cap: $54.0 billion; Price-to-sales ratio: 5.6; Dividend yield: 1.2%; TSINetwork Rating: Average; www.motorolasolutions.com) tends to fuel its growth with acquisitions....

1 min read

Pat McKeough

Growth Stocks

New investments will help them thrive

These two chipmakers are investing heavily in new plants. While these outlays will depress their earnings in 2024, the spending also puts them in a better position to fuel their long-term growth.

INTEL CORP. $43 is a buy. The company (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.1 billion; Market cap: $176.3 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.2%; TSINetwork Rating: Above Average; www.intel.com) is the world’s leading maker of computer chips: its products power 65% of all personal computers and 80% of all datacentres.

In the fourth quarter of 2023, Intel’s revenue rose 9.7%, to $15.41 billion from $14.04 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

High p/e adds to Apple’s risk

APPLE INC. $182 is still a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 15.6 billion; Market cap: $2.8 trillion; Price-to-sales ratio: 7.4; Dividend yield: 0.5%; TSINetwork Rating: Average; www.apple.com) gets about half of its revenue from iPhone sales....

1 min read

Pat McKeough

Growth Stocks

Diageo remains vulnerable

DIAGEO PLC ADR $151 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 562.5 million; Market cap: $84.9 billion; Price-to-sales ratio: 3.6; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages.

In the first half of its 2024 fiscal year, ended December 31, 2023, Diageo’s sales fell 1.4%, to $10.96 billion from $11.12 billion a year earlier (Note—the company now reports in U.S....

1 min read

Pat McKeough

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Investors Association of Canada
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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.