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3 ways to profit from Australia’s ageing population

According to the government’s Australian Institute of Health and Welfare department, the Australian population aged 65 and above is projected to more than double in size over the next four decades.

At present there are an estimated 3.7 million people aged 65 and over, but by 2056 this will have ballooned to over 8.7 million.

I expect this to be a big boost for a good number of companies listed on the Australian share market.

Here are three that I think could be long-term winners:

Japara Healthcare Ltd (ASX: JHC)

I believe this aged care centre operator is one of the best positioned companies to profit from Australia’s ageing population. Although it had a reasonably weak FY 2017, I expect in the long-term the sheer demand for its rooms will enable it to grow earnings and its dividend at an above-average rate.

Swift Networks Group Ltd (ASX: SW1)

Aged care providers need to provide their residents with telecoms and entertainment facilities and Swift Networks is on hand to help. At present the company provides Regis Healthcare Ltd (ASX: REG) and National Lifestyle Villages with the ability to not only offer their residents personalised TV viewing and internet access, but distribute bulletins, alerts, menus and other information to residents through its system.

Zenitas Healthcare Ltd (ASX: ZNT)

As Australia’s ageing population grows, demand for healthcare services is expected to rise significantly. I believe this is a big positive for this recently listed home care and health services company. Especially as the National Healthcare Reform aims to move the burden of healthcare services from hospitals to primary care. Although the company has a relatively small footprint now, over the next decade I expect it to take advantage of the highly fragmented industry and grow through acquisitions.

Finally, here are three more shares which could be fantastic long-term buy and hold investment options.

Top 3 ASX Blue Chips To Buy In 2017

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Motley Fool contributor James Mickleboro has no position in any of the 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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