Over the next decade, there are few long-term trends more appealing than the rise of healthcare costs intertwined with ageing populations.
The CSL Limited (ASX: CSL) share price, Cochlear Limited (ASX: COH) share price and Monash IVF Group Ltd (ASX: MVF) share price could benefit from an older population.
CSL Limited
CSL is the global blood plasma business, treating some of the most debilitating and life-threatening diseases. CSL is one of Australia's true medical success stories, with its shares rallying more than 800% in the past 15 years.
Despite evolving into a $55 billion company, however, CSL continues to grow. A pleasing feature of CSL is that its products are dependable. Meaning, patients produce a steady stream of recurring revenue. CSL shares also offer a 1.4% dividend.
Cochlear
Like CSL, Cochlear generates a chunk of its sales overseas, in markets also with an ageing demographic. Cochlear is the leading implantable hearing aid developer. It is set to benefit from growth in the industry and ongoing product development.
At today's prices, Cochlear shares appear a little expensive but given the trends and its 2% dividend yield, I think it deserves a spot on long-term investors' watchlists.
Monash IVF
As people get older and have babies later in life, IVF specialists like Monash IVF should benefit. The $430 million company has had a rough trot of late, with its share price down 20% in six months. However, there is a lot to like about the company.
Unlike many healthcare shares, Monash IVF has a large 4.8% dividend yield and is currently forecast to grow profits modestly over coming years.
Foolish Takeaway
Australia is not the only country staring down the barrel of an ageing population. Buying into a diversified portfolio of healthcare businesses and holding for the long-term could be an ideal way to benefit. Other options include buying shares of companies that could benefit from rising wealth, such as Magellan Financial Group Ltd (ASX: MFG); health insurance companies like NIB Holdings Limited (ASX: NHF); aged care facility owners; or funeral providers.
In my opinion, CSL, Cochlear and Monash IVF deserve a spot on investors' watchlists giving the long-term trends at play.
