What is one of the most lucrative secular trends that is happening right now?
If you answered with “the aging population,” you’re right!
In fact, we’re inching closer and closer to being in the throes of this trend that will see a major demographic shift of people from being part of the workforce to being older and retired.
This means many things, but given that this demographic shift is happening to the baby boomers, one of the largest generations of our time, we know that many lucrative investment opportunities will come of it.
The healthcare sector is one of the biggest beneficiaries of this shift.
The following two stocks are in the healthcare space, and they are destined to provide strong returns well into the future.
Savaria Corp. (TSX: SIS)
Savaria is a dividend stock with an $800 million market capitalization and a 2.32% dividend yield.
The company manufactures and distributes personal mobility products such as stair lifts, elevators, and platform lifts for the aging population in Canada, the United States, Australia, South America, and Europe.
Its stock has risen more than 500% in the last five years, as revenue has more than doubled, net income has increased 260%, and cash flow from operations has increased 170%.
Earnings per share has doubled since 2014 and is expected to double again by 2020.
The stock has risen 18% in the last year, but has fallen 12% since this summer, giving investors an opportunity to buy on weakness.
The first six months of 2018 results were strong, with a 69% increase in revenue, a 50.6% increase in EBITDA, and a 100% increase in EPS highlighting the strength of this industry.
Accordingly, management increased its dividend 17% by in September.
Al in all, this stock is seeing very strong growth, trading at attractive valuations, while giving investors a solid dividend yield.
Jamieson Wellness Inc. (TSX: JWEL)
Jamieson Wellness is an iconic brand in the natural or alternative health care industry, with a leading market share position in Canada and an international opportunity that is growing fast.
Jamieson is benefitting not only from the aging population, but also from a shifting mentality in the population in general, as we’ve become more open to improving our health with the use of alternative products such as vitamins, minerals and supplements.
The company is achieving strong returns on equity of north of 20%, and has seen its revenue increase 55% in the last three years, and strong free cash flow generation.
The stock has a five-year return of 43%, and with a solid and visible business, this stock is a great addition to any investors portfolio.
