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

Existing clients fuel CGI’s growth

CGI INC. $103 is your #1 Aggressive Buy for 2022. Through shares in the company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 239.7 million; Market cap: $24.7 billion; Price-to-sales ratio: 2.0; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) investors benefit from Canada’s largest provider of computer-outsourcing services....

1 min read

Pat McKeough

Growth Stocks

Our food sellers better handle inflation

Statistics Canada recently reported that food prices in Canada rose 10.8% on an annual basis. That’s mainly because food producers are raising their selling prices to offset higher costs for ingredients, transportation and labour.

We feel the best way to profit from higher food prices is with major retailers such as Loblaw....

6 min read

Pat McKeough

Growth Stocks

These retailers have made all the right moves

Both Loblaw and Metro successfully weathered the pandemic. In fact, the shares of both are now trading near all-time highs for our subscribers! Meanwhile, many of their customers who opted for home delivery (or in-store pickup) during pandemic lockdowns are sticking with that value-added service....

2 min read

Pat McKeough

Growth Stocks

State Street rewards investors

STATE STREET CORP. $63 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 367.6 million; Market cap: $23.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.0%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans.

State Street recently agreed to pay $3.5 billion for the investor services division of Brown Brothers Harriman & Co....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

NORTONLIFELOCK INC. $21 is a buy. The security software maker (Nasdaq symbol NLOK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 665.6 million; Market cap: $14.0 billion; Price-to-sales ratio: 4.3; Dividend yield: 2.4%; TSINetwork Rating: Average; www.nortonlifelock.com) has two main businesses: Norton computer antivirus software for individuals; and LifeLock identity-theft protection.

NortonLifeLock has just received key regulatory approval to complete its acquisition of European cybersecurity firm Avast plc for $8 billion.

Meantime, NortonLifeLock continues to attract new customers as people working from home spurs a jump in cyberattacks....

2 min read

Pat McKeough

Growth Stocks

Go beyond the big banks with these leaders

We continue to recommend investors diversify their Finance sector holdings with non-banking stocks. You can further cut your risk with high-quality firms that dominate their niche markets, such as eBay and Broadridge.

EBAY INC. $39 is a buy. The company (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 549.4 million; Market cap: $21.4 billion; Price to-sales ratio: 2.3; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries, where sellers pay fees to auction items or offer them at fixed prices.

eBay’s revenue in the second quarter of 2022 fell 5.9%, to $2.42 billion from $2.67 billion a year earlier.

The decline is mainly because stores are re-opening as COVID-19 lockdowns end....

2 min read

Pat McKeough

Growth Stocks

More gains ahead for these two spinoffs

These recent spinoffs have thrived since becoming independent firms. While rising costs and unfavourable currency rates are squeezing their margins, we expect these market leaders to rebound quickly as the economy recovers.

CARRIER GLOBAL CORP....

2 min read

Pat McKeough

Growth Stocks

Mondelez can handle higher costs

MONDELEZ INTERNATIONAL INC. $58 is a buy. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $81.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.mondelezinternational.com) mainly makes snack foods, such as cookies and chocolate bars, and gum.

In the three months ended June 30, 2022, sales rose 9.5%, to $7.27 billion from $6.64 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Three buys for post-pandemic returns

These three medical device makers continue to enjoy strong demand for their products as hospitals and clinics resume regular procedures on easing of COVID-19 lockdowns and other restrictions. While ongoing supply-chain problems add risk, we like their long-term prospects.

BAXTER INTERNATIONAL INC....

4 min read

Pat McKeough

Growth Stocks

19 years of rising dividends

TEXAS INSTRUMENTS INC. $163 is a buy. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 923.6 million; Market cap: $150.5 billion; Price-to-sales ratio: 7.7; Dividend yield: 3.0%; TSINetwork Rating: Average; www.ti.com) is a top maker of analog chips, which convert inputs like touch, sound and pressure into electronic signals that computers can understand.

Starting with the November 2022 payment, investors will get a 7.8% boost to their quarterly dividend....

1 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.

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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I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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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.