The COVID-19 pandemic has highlighted structural problems that Canada and much of the developed world will have to contend with for decades to come. Low population growth and increased life expectancy will see the share of the population over the age of 65 increase to roughly 25% by 2068. Spending on elderly transfer benefits is projected to peak at roughly 3.2% of Gross Domestic Product in 2031.
Today, I want to look at two TSX stocks that are worth adding as investors prepare for this future. Let’s dive in.
Jamieson Wellness (TSX:JWEL) made its debut on the TSX in 2017. At the time, management predicted that the company’s growth would be fueled by an aging domestic and global population. Jamieson develops, manufactures, distributes, and sells natural health products around the world. Its shares have climbed 44% year-over-year as of mid-afternoon trading on March 31.
In 2020, the company reported revenue growth of 17% to $403 million. Adjusted EBITDA increased 15.9% to $88.0 million. Jamieson saw especially strong results in Asia. This promising TSX stock possesses a price-to-earnings ratio of 36. That is better-than-average compared to industry peers.
Savaria (TSX:SIS) provides accessibility solutions for the elderly and physically challenged around the world. This TSX stock is up 19% in 2021 and 65% from the prior year. Adjusted net earnings rose 6.5% year-over-year to $28.5 million or $0.56 per share in 2020.
Meanwhile, adjusted EBITDA climbed 7.5% to $59.8 million. Savaria also pays out a monthly distribution of $0.04 per share. That represents a 2.7% yield.
