Canada is set to see a record number of citizens enter their senior years, 65 and older, over the next few decades. Our country is not alone. Indeed, many other nations in the developed world are wrestling with aging populations. This, in turn, is putting increased pressure on the political, economic, and social climates of these countries.
In 2010, 14% of Canada’s population was 65 or older. By 2030, the population of Canadian seniors will make up 22% of the total by 2030.
Today, I want to zero in on three TSX stocks that I’m looking to buy and hold until we hit that 2030 mark.
Why I’m very bullish on this TSX stock for the long haul
Park Lawn (TSX:PLC) is a Toronto-based company that owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. Shares of this TSX stock have increased 1.7% so far in 2023 as of close on Thursday, July 13. Park Lawn stock is still down 5.3% in the year-to-date period.
Investors should be excited about the domestic and global deathcare industry. Indeed, this space saw a huge boost in engagement during the COVID-19 pandemic. Meanwhile, the aging population in North America is set to fuel its growth going forward.
This company released its first-quarter fiscal 2023 earnings on May 11. Park Lawn reported revenue growth of 4.3% to $86.7 million in the first quarter of fiscal 2023. EBTIDA stands for earnings before interest, taxes, depreciation, and amortization. Park Lawn reported adjusted EBITDA of $20.5 million in the first quarter of 2023 — down 4.1% compared to the previous year.
Shares of this TSX stock are trading in favourable value territory compared to its industry peers. Moreover, Park Lawn offers a quarterly dividend of $0.114 per share. That represents a modest 1.8% yield.
Here’s another TSX stock poised for growth as the senior population explodes
Jamieson Wellness (TSX:JWEL) is a Toronto-based company that is engaged in the development, manufacture, distribution, marketing, and sale of natural health products, including vitamins, herbal, and mineral nutritional supplements for humans in Canada, the United States, and internationally. This TSX stock has dropped 5.6% month over month as of close on July 13. Its shares are now down 20% in the year-to-date period.
This TSX stock made its TSX debut back in July 2017. Then chief executive officer Mark Hornick stated that Jamieson was geared up for strong growth on the back of Canada’s aging population. Health conscientiousness experienced a significant boost in the face of the COVID-19 pandemic. That is good news for Jamieson.
In the first quarter of fiscal 2023, this company delivered consolidated revenue growth of 31% to $136 million. Meanwhile, Jamieson delivered adjusted EBITDA of $24.5 million — up from $20.9 million in the first quarter of fiscal 2022.
Jamieson last had a rock-solid price-to-earnings ratio of 23. That puts Jamieson in good value territory compared to its industry peers. The TSX offers a quarterly distribution of $0.17 per share, which represents a 2.4% yield.
Aging demographics should spur Canadians to snatch up this REIT
Chartwell Retirement Residences REIT (TSX:CSH.UN) is the third TSX stock I’d look to snatch up on the dip. This real estate investment trust (REIT) owns and operates a complete range of seniors housing communities, from independent supportive living through assisted living to long-term care. Shares of this REIT jumped 1% on July 13.
This REIT released its first quarter fiscal 2023 earnings on May 4. Resident revenue rose to $165 million in the first quarter of fiscal 2023 — up from $157 million in the prior year. Moreover, same-property adjusted net operating income rose to $49.6 million compared to $46.0 million in the first quarter of 2022. This TSX stock offers a monthly dividend of $0.051 per share, representing a tasty 6.5% yield.
