3 No-Brainer Healthcare Stocks to Buy With $500 Right Now

Three outperforming healthcare stocks are strong buys with as little as $500 in capital.

| More on:
Doctor talking to a patient in the corridor of a hospital.

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

People paid little attention to medical care until the coronavirus breakout in 2020. The global pandemic disrupted healthcare services and heightened investors’ awareness in the sector. Fast-forward to the present, three healthcare stocks are among the no-brainer buys.

You can make money from Extendicare (TSX:EXE), Medical Facilities (TSX:DR), and Healwell AI (TSX:AIDX) with as little as $500. All three are outperforming and have market-beating returns thus far at the end of Q3 2024. Their upward momentum is unstoppable, and potential gains could soar through the roof.

Long-term stability

Senior housing and care for older people is a growing sector in Canada. Extendicare is a fixture in retirement residences and a reliable passive income source. At $9.34 per share, current investors enjoy a 33.9% year-to-date gain and partake in the 5.1% dividend yield (monthly payout).

Created with Highcharts 11.4.3Extendicare PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The business took a hit during the health crisis but has since recovered remarkably. This $776.2 million company provides quality care and services for Canadian seniors. Extendicare ended Q2 2024 with a strong balance sheet and liquidity position.

Its President and CEO, Dr. Michael Guerriere, said Extendicare has returned to long-term stability, evidenced by improved operating margins and higher funding for long-term care (LTC) and home health care. He adds that underlying demographic trends support continued growth across all business lines and management’s LTC redevelopment agenda.

Unique business model

Medical Facilities owns surgical facilities in the United States consisting of four specialty surgical hospitals and one ambulatory surgery centre. At $14.83 per share, the year-to-date gain is 68.7%. This small-cap stock pays a decent 2.5% dividend.

Created with Highcharts 11.4.3Medical Facilities PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

This $356.4 million company has a unique business model that covers all stakeholders. All facilities ensure the highest-quality treatment and boast amenities to enhance patient care. Medical Facilities partners with or makes physicians co-owners (114 physician partners) and allows non-owner physicians to practice.

Management aims to increase operating cash flows to the quarterly dividend and deliver stable income to investors.

In June this year, Medical Facilities announced plans to expand its services and offer heart and vascular care through Black Hills Surgical Hospital. A state-of-the-art cardiac catheterization laboratory will be constructed for advanced cardiac and coronary procedures.

Like Extendicare, Medical Facilities will benefit from the growing demand for healthcare, the aging population, and overall population growth.

Healthcare technology

Technological advances are also happening in healthcare, with physicians at the helm. Healwell AI, a $217.4 million healthcare technology company, focuses on and uses artificial intelligence (AI) and data science for preventative care and early disease detection.

Created with Highcharts 11.4.3Healwell Ai PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

This healthcare stock flew high amid a high-interest rate environment and is ,still rising. At only $1.33, the year-to-date gain is 77.3%. Had you invested $500 at year-end 2023, your money would be $886.67 today. Market analysts recommend a ‘strong buy’ rating. Their 12-month average price forecast is $3.68, a 177% upside.

Healwell is on the road to profitability following the record $544 million in revenue in Q2 2024. “Our robust acquisition pipeline, coupled with our strong cash position, strategically positions us for substantial growth ahead,” said its CEO, Dr. Alexander Dobranowski.

Top-of-mind choices

Healthcare stocks are now top-of-mind choices of growth investors. The healthcare industry will continue to make strides supported by non-traditional business models and new technologies.   

Should you invest $1,000 in Canadian Natural Resources right now?

Before you buy stock in Canadian Natural Resources, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian Natural Resources wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Market Dip: Opportunity or Risk This April?

This market dip might have investors worried, but should they be excited instead?

Read more »