Here are 3 ASX healthcare shares I would consider buying today

Year-to-date the S&P/ASX 200 Health Care (Index: ^AXHJ) (ASX: XHJ) has thoroughly outperformed the benchmark S&P/ASX 200 index with a 16% gain.

Despite the strong gain I still believe there are some great options for investors in the healthcare sector. Here are three to consider:

Japara Healthcare Ltd (ASX: JHC)

Australia’s population is ageing and demand for aged care services is expected to increase at a strong rate over the next decade. I believe this puts aged care provider Japara Healthcare in a great position to deliver above-average earnings growth. Especially with the company working hard to meet the expected demand. Management intends to increase its number of places by 29% within the next three years. While the industry is prone to regulatory risk, I believe the risk/reward on offer with a buy and hold investment in Japara is compelling.

Monash IVF Group Ltd (ASX: MVF)

With its share price down 10% year-to-date, I believe the shares of this fertility specialist are trading at an attractive level. Although competition has heated up in the industry, I think the strong underlying demand fundamentals for IVF and women’s imaging services should allow the company to grow earnings at a reasonably strong rate over the next decade. At a little over 14x annualised earnings and providing a trailing fully franked 4.7% dividend, Monash IVF could be worth considering.

ResMed Inc. (CHESS) (ASX: RMD)

Although the ResMed share price is up 10% so far this year, I feel confident that even at today’s price the sleep treatment company could prove to be an outstanding buy and hold investment. With the sleep apnoea market expected to grow at a solid clip for at least the next few years, I believe ResMed will be able to continue generating above-average sales growth for some time. Thanks partly to the successful acquisition of the Brightree software business, ResMed recently posted a 17% increase in sales to US$530.4 million.

While ResMed is a a great growth share, its dividend isn't the biggest. So investors looking for huge dividend yields might want to consider this high quality dividend share.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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