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

Our updates help keep you on track

LOBLAW COMPANIES, $127.50, is a buy. The retailer (Toronto symbol L; Shares outstanding: 313.1 million; Market cap: $40.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.4%; 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 Conservative stocks: Chevron, Howmet Aerospace and Motorola Solutions

CHEVRON CORP. $150 (www.chevron.com) is a buy. The company recently agreed to buy rival oil producer Hess Corp. (New York symbol HES) in an all-stock merger. The deal is worth about $60 billion, including Hess’s debt, which is equal to 21% of Chevron’s market cap (the total value of all outstanding shares) of $283.6 billion....

1 min read

Pat McKeough

Growth Stocks

Starbucks’ outlook remains bright

STARBUCKS CORP. $95 is a buy. The company (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.15 billion; Market cap: $109.3 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.starbucks.com) is a leading seller and roaster of specialty coffee.

In Starbucks’ fiscal 2023 fourth quarter, ended October 1, 2023, sales rose 11.4%, to $9.37 billion from $8.41 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

TERADATA CORP. $43 is still a hold. The company (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 97.8 million; Market cap: $4.2 billion; Price-to-sales ratio: 2.5; No dividend paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software to capture and store large amounts of data for its clients—individual businesses....

2 min read

Pat McKeough

Growth Stocks

We still like these medical device makers

These two producers of medical devices are selling or spinning off smaller operations. That will let them better focus on their main businesses. Although both stocks have dropped lately due to fears that new weight-loss drugs will hurt demand for their products, we feel both will benefit from an aging population.

BAXTER INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

Tennant gains as supplies improve

TENNANT CO. $91 is a hold. The maker of industrial floor and street-cleaning equipment (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.7 million; Market cap: $1.7 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.2%; TSINetwork Rating: Average; www.tennantco.com) reported 15.9% higher sales in the third quarter of 2023, to $304.7 million from $262.9 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

New businesses improve their prospects

In April 2020, RTX Corp. (formerly Raytheon Technologies Corp.) (New York symbol RTX) spun off Carrier and Otis as separate companies. So far, Carrier has soared over 290%, while Otis has gained an impressive 95%. We feel their recent acquisitions set them up for even more gains.

CARRIER GLOBAL CORP....

2 min read

Pat McKeough

Growth Stocks

This spinoff looks pricey

KYNDRYL HOLDINGS INC. $20 is a hold. The company (New York symbol KD; Conservative Growth Portfolio; Manufacturing sector; Shares o/s: 229.5 million; Market cap: $4.6 billion; No dividends paid; P-to-S ratio: 0.3; TSINetwork Rating: Extra Risk; www.kyndryl.com) took its current form in November 2021 when IBM spun off its legacy business of helping corporate and government clients manage their datacentres....

1 min read

Pat McKeough

Growth Stocks

Cost cuts lift FedEx’s profits

FEDEX CORP. $246 is still a buy. The company (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 249.9 million; Market cap: $61.5 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.0%; TSINetwork Rating: Average; www.fedex.com) delivers packages and documents in the U.S....

1 min read

Pat McKeough

Growth Stocks

A new buy for aggressive investors

This month, we’re adding Danaher to our Aggressive Growth Portfolio. This maker of specialized measuring equipment and tools is a long-time recommendation of our TSI Spinoffs and Takeovers newsletter, which focuses on spinoffs and their former parent companies.

Danaher has completed three spinoffs since July 2016....

4 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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Financial Post Columnist
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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.

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.