3 Stocks Positioned for Big Growth Due to Aging Demographics

Jamieson Wellness Inc. (TSX:JWEL) and others are poised for big growth as Canadian demographics change over the next half century.

| More on:
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

In 2017, Statistics Canada revealed that for the first time in our history, seniors make up a bigger share of the Canadian population than children. Population growth for Canadians over the age of 65 was 20% compared to the broader population growth of 5% since the previous census. By 2031, Statistics Canada projects that one in four Canadians will be over the age of 65.

There is no doubt that these trends will dramatically affect social policy and the political landscape in the coming decades. Investors must keep a close eye on these trends and watch for companies that stand to benefit from them. Today we will look at three stocks that are poised for solid growth in the long term.

Jamieson Wellness Inc. (TSX:JWEL)

Jamieson is a manufacturer, distributor, and marketer of supplements and health products. The stock has dropped 3% in 2018 as of close on January 22. Jamieson had its initial public offering in July 2017. CEO Mark Hornick has been vocal about his optimism for Jamieson due to the increased interest in supplements from older demographics.

Jamieson released its third-quarter 2017 results on November 9. Overall, the numbers were impressive with revenue climbing 45% to $80.1 million, and net income surging 210.2% to $7.8 million. Jamieson also announced a quarterly dividend of $0.08 per share with a 1.4% dividend yield.

A recent report from Data Bridge Market Research projected that the global supplement market would grow to $250 billion by 2020, representing a compound annual growth rate of 6.9%.

Park Lawn Corporation (TSX:PLC)

Park Lawn is a Toronto-based company that owns and operates cemeteries, crematoriums, and funeral homes across Canada and in the United States. The stock has already climbed 6.1% in 2018. The company released its third-quarter 2017 results on November 14.

Park Lawn revenue increased 29.3% year over year to $22.4 million compared to $17.3 million in Q3 2016. Adjusted net earnings soared 81.3% to $2.2 million and adjusted EBITDA rose 65% to $4 million. On January 18, Park Lawn announced a dividend of $0.038 per share to be paid out on February 15.

As is the case with a rising and aging population, the number of deaths has also steadily climbed in Canada. This has naturally increased the demand for the kind of services that Park Lawn provides.

Sienna Senior Living Inc. (TSX:SIA)

Sienna Senior Living is a Toronto-based owner and operator of long-term care homes, retirement homes, and independent living facilities. Shares of Sienna Senior Living have climbed 8.9% year over year. The company released its third-quarter 2017 results on November 14.

Revenue rose 7.2% year over year to $139.9 million and net income increased from $6.2 million in Q3 2016 to $6.6 million. Sienna Senior Living acquired a 202-suite community in Barrie and a 182-suite community in Kingston. The company also announced an attractive quarterly dividend of $0.08 per share, representing a 4.9% dividend yield.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned.

More on Investing

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

2 Oversold Great Canadian Dividend Stocks to Buy Now and Own for 20 Years

These top Canadian dividend stocks look oversold right now and continue to raise their payouts.

Read more »

Man holding magnifying glass over a document
Dividend Stocks

3 Value TSX Stocks to Eye in July 2022

Here are a few value TSX stocks to check out in July 2022. They also pay juicy, safe dividend income…

Read more »

sad concerned deep in thought

Elon Musk Buys Dogecoin: Should You?

Elon Musk is back to buying Dogecoin (CRYPTO:DOGE). Should you join him?

Read more »

analyze data
Dividend Stocks

2 Canadian Stocks at the Top of My Buy List

Here are two of the top Canadian stocks on my buy list, as the market uncertainty continues to plague Canadian…

Read more »

question marks written reminders tickets

Oil Stocks vs. Gold: Which Is Better for a Recession?

Gold is considered a good asset to hold in recessions, but oil stocks like Cenovus Energy (TSX:CVE)(NYSE:CVE) are doing better…

Read more »

gas station, convenience store, gas pumps

Is Alimentation Couche-Tard (TSX:ATD) Stock a Buy After Disappointing Earnings?

Alimentation Couche-Tard (TSX:ATD) had a challenging fourth quarter, but there are still plenty of reasons to like this stock long…

Read more »

Stocks for Beginners

Investing Strategies for Canadians in an Uncertain Economy

These are uncertain times, as the economy grapples with high inflation. Here are four investing strategies for the current market.

Read more »

Tech Stocks

These 3 Cheap Stocks Would Be an Excellent Addition to Your Portfolio

Given their attractive valuation and solid growth potential, these three stocks would be an excellent addition to your portfolio.

Read more »