Your instant 5-share ASX healthcare portfolio

We’ve all heard of the rally in the CSL Limited (ASX: CSL) share price and Cochlear Limited (ASX: COH) share price, but what about smaller players like Nanosonics Ltd. (ASX: NAN), Pro Medicus Limited (ASX: PME) and Paragon Care Ltd. (ASX: PGC)?

The CSL share price isn’t the only one rallying!

Source: Google Finance

Source: Google Finance

Taking one look at the chart above it’s clear that CSL shares are not the only game in town.

Your instant 5-share ASX healthcare portfolio

1. CSL

Despite its title as Australia’s biggest healthcare company, CSL continues to chalk up more and more growth. The $56 billion CSL is a global biopharmaceutical giant, manufacturing blood plasma products for life-threatening diseases. It even does anti-venoms! In my ideal healthcare portfolio, it’s a near certainty that CSL would be included.

2. Cochlear

Cochlear is a $7.5 billion biotechnology company, creating hearing aid devices for hundreds of thousands of people around the world. While there are competitors in the industry, Cochlear is the leader and continues to benefit from its brand appeal. Its shares also offer a handy dividend.

3. Nanosonics

Nanosonics is a $900 million company, having rallied some 460% over the past five years. Nanosonics develops and distributes its ultrasound probe device, Trophon. The device is used to efficiently disinfect ultrasound probes in hospital settings.

4. Pro Medicus

Melbourne-based Pro Medicus is a small cap, with a market capitalisation of $460 million. It is going from strength to strength. Pro Medicus has developed software that enables radiologists and doctors to inspect x-rays and other medical imagery from a smartphone. That may sound like a trivial phone app, but there are significant regulations, security issues and data processing requirements preventing others from doing the same thing.

5. Paragon Care

Paragon Care is the smallest company on this list, with a market capitalisation of $115 million. It is also arguably the riskiest, in my opinion. It distributes medical equipment and products in Australia and New Zealand. With acquisitions growing its product suite, Paragon care appears set to realise synergies while also growing its sales. 

Foolish Takeaway

Australia’s healthcare market is highly developed, offering investors the opportunity to participate in the growth of many quality businesses. Moreover, the rising cost of healthcare and ageing populations bode well for long-term returns.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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