2 defensive shares for healthy returns

These 2 shares could make for safe and growing returns.

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The healthcare industry is a good place to be invested, in my opinion. Our population is ageing and there are always more treatments being developed.

Here are two healthcare shares I think would make solid portfolio additions:

Sonic Healthcare Limited (ASX: SHL)

There aren't many ASX shares that have a truly global footprint, Sonic is one that does. It offers pathology, radiology, diagnostic imaging and primary care medical services. It's a business that has grown strongly since it listed.

Sonic has operations in Australia, New Zealand, the USA, Germany, Belgium, Switzerland, the UK and Ireland.

The business paid a dividend of $0.09 per share in 1998 and it has paid $0.77 per share over the last year. It grew or maintained its dividend every year in-between. That's a strong record and I wouldn't be surprised if the next five years had more dividend increases in store.

Sonic is currently trading at 19x FY18's estimated earnings with a partially franked dividend yield of 3.55%.

CSL Limited (ASX: CSL)

CSL is another healthcare giant that has expanded well internationally.

Demand for blood plasma products and immunisations is consistent and growing thanks to population growth.

CSL invests many millions of dollars into research and development, which fuels future growth and makes profit growth more likely. The business has maintained or grown its dividend every year since 2009.

It's also a decent way to play the US dollar if you believe that the Australian dollar will decrease in value.

CSL is currently trading at 31x FY18's estimated earnings with an unfranked dividend yield of 1.25%.

Foolish takeaway

Although neither of these shares are likely to shoot the lights out from the current prices, I think both are solid choices and should generate reliable long-term capital growth.

Motley Fool contributor Tristan Harrison 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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