2 Stocks to Buy as Canada’s Population Ages

Nations in the developed world are grappling with aging populations that will face formidable social, political, and economic challenges. The COVID-19 pandemic was devastating for the elderly. In Canada, about 80% of all COVID-19 deaths occurred in long-term care facilities. The public and private sectors need to work together to address the challenges posed by an aging population. By 2037, the population of senior citizens in Canada will reach 10.7 million.

Today I’d like to take a quick look at two stocks that are worth buying, given these trends.

Park Lawn (TSX: PLC) is an Ontario-based company providing funeral, cremation, and cemetery services in Canada and the United States. It may be morbid, but these services are increasingly in demand as the population ages rapidly. Park Lawn’s shares are up 21% in 2021. The share is up 51% over the previous year.

Park Lawn achieved net sales growth of 26% to $ 89.5 million in the first quarter of 2021. Adjusted Net Income and Adjusted EBITDA, on the other hand, grew 59% and 42%, respectively, compared to the prior year.

Savaria (TSX: SIS) is a Laval-based company providing access solutions for the elderly and physically challenged in Canada and around the world. The stock is up 36% in 2021 and 59% year over year. The growing population of seniors is driving the global demand for personal mobility products. Savaria is well positioned to benefit from this.

In the first quarter of 2021, the company’s revenue grew 26.8% year over year to $ 112 million. Meanwhile, gross profit increased 29.2% to $ 38.9 million. Savaria also offers a monthly dividend of $ 0.08 per share, which translates to a yield of 2.4%.

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