Nations in the developed world are wrestling with aging populations that are set to present momentous social, political, and economic challenges. The COVID-19 pandemic was devastating for elderly populations. In Canada, approximately 80% of all COVID-19 deaths occurred in long-term care facilities. The public and private sectors must work together to meet the challenges that an aging population brings. By 2037, the population of seniors in Canada is set to reach 10.7 million.
Today, I want to take a brief look at two stocks that are worth buying as we take in these trends.
Park Lawn (TSX:PLC) is an Ontario-based company that provides funeral, cremation, and cemetery services in Canada and the United States. It may be morbid, but these services will see growing demand as the population rapidly ages. Shares of Park Lawn have climbed 21% in 2021. The stock is up 51% from the prior year.
In Q1 2021, Park Lawn delivered net revenue growth of 26% to $89.5 million. Meanwhile, adjusted net earnings and adjusted EBITDA delivered growth of 59% and 42%, respectively, compared to the previous year.
Savaria (TSX:SIS) is a Laval-based company that provides accessibility solutions for the elderly and physically challenged peoples in Canada and around the world. Its stock is up 36% in 2021 and 59% year over year. The growing population of seniors is fueling demand for personal mobility products globally. Savaria is well-positioned to benefit.
In the first quarter of 2021, the company saw revenue rise 26.8% year-over-year to $112 million. Meanwhile, gross profit jumped 29.2% to $38.9 million. Savaria also offers a monthly dividend of $0.08 per share, representing a 2.4% yield.
