The S&P/TSX Composite Index fell 14 points on July 23, extending losses after a triple-digit decline on July 20. The explosion of trade tensions and concerns over slowing growth have some investors worried about the long-term prospects for their portfolios. Today, we are going to go over three of my top stocks that investors should consider adding for the long term. These companies are well positioned to thrive in the next decade and well beyond, largely due to shifting demographics.
Sienna Senior Living Inc. (TSX: SIA)
Sienna Senior Living was my top stock for the month of July. It is the largest licensed long-term-care operator in Ontario, and it’s one of the largest owners of seniors’ housing. The stock is down 1% month over month and has dropped 8.5% in 2018 as of close on July 23.
Sienna is set to release its second-quarter results on August 8. In the first quarter, the company saw revenue rise 8.5% from the prior year to $145.4 million. Adjusted funds from operations grew to $20.8 million compared to $16.6 million in Q1 2017. The stock also offers a monthly dividend of $0.075 per share, representing a 5.4% dividend yield.
Canadian seniors grew to outnumber Canadian children at 5.9 million for the first time in the 2016 census. According to Statistics Canada, the senior population will rise from 15% to 25% between 2010 and 2063. The aging population will put a strain on government services, and private sector entities like Sienna are a great bet to reap the rewards of these trends.
Park Lawn Corporation (TSX: PLC)
Park Lawn owns and operates cemeteries, crematoriums, funeral homes, and funeral services businesses in Canada and the United States. Shares of Park Lawn have climbed 7.3% in 2018 so far and are up 27% year over year. The company is likely to see increased activity due to the aging population trends we have covered above.
Park Lawn is set to release its second-quarter results in early August. In the first quarter, Park Lawn saw adjusted EBITDA grow to $5.8 million over $3.3 million in the prior year. Adjusted net earnings surged 65.5% to $2.8 million, and the company made significant acquisitions in New York State and Ontario in March.
The stock also offers a monthly dividend of $0.038 per share, which represents a 1.8% dividend yield. In addition to its solid dividend, Park Lawn has been an extremely reliable growth stock over the past decade. Investors should expect this to continue into the next decade and beyond.
Jamieson Wellness Inc. (TSX: JWEL)
Jamieson Wellness is a Toronto-based sports nutrition and supplements company. Shares of Jamieson have climbed 11.1% in 2018 so far. The company will release its second-quarter results on August 8.
The aging population has proven to be a reliable consumer of health supplements. This is a development that Jamieson hopes to take advantage of in its domestic and international operations. First-quarter results were very positive, as revenue rose 8% year over year to $70.1 million, and adjusted EBTIDA increased 11% to $12.7 million. The stock also offers a quarterly dividend of $0.08 per share, representing a 1.3% dividend yield.
