The S&P/TSX Composite Index rose 73 points on Wednesday, April 26. Today, I want to focus on three stocks that Canadian investors should look to buy and hold for the next 20 years. These stocks have the potential to drive big growth in your portfolio for the long term. Let’s dive in.
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This telehealth stock offers a shot at massive growth over the next two decades
WELL Health Technologies (TSX:WELL) is a Vancouver-based company that operates as a practitioner-focused digital health company in Canada, the United States, and around the world. Shares of this exciting healthcare stock have climbed 12% month over month as of close on April 26. WELL Health stock has soared 92% in the year-to-date period. Investors can get a deeper look at its recent performance with the interactive price chart below.
Canadian investors should be eager to get in on the domestic and global telehealth market. Telehealth involves the use of digital information and communication technologies to access healthcare services remotely. Precedence Research recently valued the global telehealth market at US$102 billion in 2022. This same report projects that the global telehealth market will reach a valuation of US$893 billion by 2032. That would represent a compound annual growth rate (CAGR) of 24% over the forecast period.
This company achieved record annual revenues of $569 million in fiscal 2022 — up 88% compared to the previous year. Meanwhile, omni-channel patient visit grew 50% for the full year, and total patient interactions increased 86%. WELL Health also posted record annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $104 million, which was up 73% from fiscal 2021.
Demographic shifts should vault this TSX stock to new heights
Jamieson Wellness (TSX:JWEL) is a Toronto-based company that develops, manufactures, distributes, markets, and sells natural health products to consumers in North America and worldwide. Its shares have dropped 6% so far in 2023. The stock is down marginally year over year.
This stock made its TSX debut in July 2017. President and Chief Executive Officer Mark Hornick stated that Jamieson was geared up for strong growth largely due to shifting demographics after its initial public offering. Indeed, aging populations are more health conscious and are gravitating to natural health products.
In fiscal 2022, this company delivered revenue growth of 21% to $547 million. Moreover, adjusted EBITDA increased 23% from fiscal 2021 to $123 million. Jamieson reported adjusted net earnings of $65.1 million, or $1.55 per diluted share — up 18% and 17%, respectively, from the prior year. Shares of Jamieson possess a price-to-earnings (P/E) ratio of 26, which puts the stock in favourable value territory compared to its industry peers. It also offers a quarterly dividend of $0.17 per share, which represents a modest 2% yield.
One more stock that should reward shareholders over the long term
Park Lawn (TSX:PLC) is the third stock I’d look to buy and hold for the next two decades and likely beyond. This Toronto-based company owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. Shares of this TSX stock have fallen marginally in 2023. Its shares have plunged 21% year over year.
The so-called deathcare industry experienced a significant and tragic uptick in activity during the COVID-19 pandemic. Investors can expect this space to continue to deliver strong growth in the years ahead, as North America wrestles with an aging population. ResearchAndMarkets recently valued the global deathcare market at US$118 billion in 2023. It expects the market to climb to US$189 billion by 2030, which would represent a CAGR of 6.1% over the forecast period.
This company reported revenue growth of 10% to $326 million in fiscal 2022. Meanwhile, adjusted EBITDA slipped 1.8% to $74.9 million. Park Lawn saw business activity reach new heights due to the impact of the pandemic in 2021. However, looking ahead, this is a stock that will reward your commitment. Shares of Park Lawn possess a P/E ratio of 26, putting the stock in better value territory than its competitors. It offers a quarterly dividend of $0.114 per share, representing a 1.7% yield.
