Like many countries in the developed world, Canada is wrestling with an aging population. The Canadian Institute for Health Information (CIHI) projected that the country’s senior population would grow by 68% over the next 20 years when it released the report in 2017. By 2037, Canada’s senior population is expected to number 10.4 million. Meanwhile, more than half of those seniors will be over the age of 75.
Today, I want to zero in on three Canadian stocks that are geared up for big growth on the back of these trends. These are equities that could make you rich in a few decades time. Let’s dive in.
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Here’s a Canadian stock that will benefit from a fast-growing industry
Savaria (TSX: SIS) is a Laval-based company that provides accessibility solutions for the elderly and physically challenged people in Canada, the United States, the United Kingdom, Europe, and around the world. Shares of this Canadian stock have climbed 8% month over month as of close on May 15. The stock is up 20% so far in 2023.
Canadian investors should be eager to get in on this promising industry. Grand View Research recently valued the global personal mobility devices market at US$14.9 billion in 2021. The report projected that this market would achieve a compound annual growth rate (CAGR) of 6.3% from 2022 through to 2030.
This company released its first-quarter (Q1) fiscal 2023 earnings on May 10. Savaria delivered revenue growth of 15% year over year to $211 million. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 27% to $31.2 million.
Shares of this Canadian stock are trading in favourable value territory compared to its industry peers. Meanwhile, it offers a monthly distribution of $0.043 per share. That represents a 3% yield.
Aging demographics are great news for Jamieson Wellness in the years ahead
Jamieson Wellness (TSX: JWEL) is another Canadian stock I’d look to snatch up in the face of an aging population. Indeed, former chief executive officer Mark Hornick said that the company hoped to take advantage of an older domestic and global population when it made its market debut back in 2017. This Toronto-based company develops, manufactures, distributes, markets, and sells natural health products including vitamins, herbal and mineral nutritional supplements. Its shares have dropped 8.6% so far in 2023.
The company released its Q1 fiscal 2023 earnings on May 4. Jamieson delivered consolidated revenue growth of 31% to $136 million. Meanwhile, adjusted EBITDA rose to $24.5 million on the back of higher volumes and gross profit.
This Canadian stock last had a solid price-to-earnings (P/)E ratio of 27. Moreover, Jamieson offers a quarterly dividend of $0.17 per share, which represents a 2.1% yield.
One more Canadian stock I’m looking to hold for decades
Park Lawn (TSX: PLC) is the third Canadian stock I’d look to snatch up in the middle of May. This company is also well positioned to deliver stronger earnings in the face of an aging Canadian population. The Toronto-based company owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. Shares of Park Lawn have dropped marginally in the year to date as of close on May 15.
In Q1 2023, Park Lawn delivered revenue growth of 4.3% to $86.7 million. Meanwhile, adjusted EBITDA slipped 4.1% year over year to $20.5 million. Park Lawn suffered a year-over-year earnings dip, as the impacts of COVID-19 on its business were diminished. This is still a stock that is geared up for huge growth going forward.
This Canadian stock offers a P/E ratio of 31, putting it in solid value territory compared to its industry peers. Park Lawn offers a quarterly distribution of $0.114 per share, representing a modest 1.7% yield.
