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3 healthcare shares to buy and hold for a decade

When it comes to long-term buy and hold investing I think the healthcare sector is one of the first places investors should look.

Demand for health care services is expected to grow strongly over the next couple of decades thanks largely to Australia’s growing and ageing population.

Three shares which I feel are positioned to profit greatly from this are listed below. Here’s why I think they could be good buy and hold investment options:

Japara Healthcare Ltd (ASX: JHC)

I believe this leading aged care provider is well positioned to deliver above-average earnings growth for at least the next decade thanks to rising demand for aged care services. Between now and 2025 the company aims to meet this demand head on by increasing its supply of places by over 65%. I expect the boost to earnings this brings will allow it to grow its already very generous trailing fully franked 5.5% dividend even further.

Ramsay Health Care Limited (ASX: RHC)

In my opinion this private hospital operator would be a fantastic buy and hold investment option and easily one of the best in the sector. As well as benefiting from Australia’s ageing population, the company’s global network means it will benefit from the same tailwinds on a global scale. Furthermore, the company has the option to accelerate its growth through acquisitions and the expansions of current hospitals.

Zenitas Healthcare Ltd (ASX: ZNT)

I believe this recently listed home care and health services company could be worth taking a closer look at. Zenitas has a wide range of community-based health services that provide integrated care solutions with the aim of reducing the high cost of acute hospital care. Currently the company has 54 locations across Australia, but has plans to grow its network rapidly through an acquisition strategy.

As well as Japara, Ramsay, and Zenitas, I think these top stocks are worth considering as buy and hold investments as well.

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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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