I like the idea of investing in shares that provide investors with a genuine tailwind.
The ageing demographics of Australia and other countries means that any business that aims to serve the retiree population in some way should see a boost. The number of people aged over 65 is expected to rise by 75% over the next 20 years.
Here are three shares that I think will benefit significantly:
Gateway Lifestyle Group (ASX: GTY)
Gateway is one of Australia’s largest retirement village operators and it is steadily expanding through acquisitions and its own developments.
I like Gateway the most in the sector because it doesn’t charge entry and exit fees, unlike its main competitors. This seems like a more sustainable and honest way of doing things.
Gateway charges rental fees that are under the government’s rental assistance amount and Gateway increases its rental fee at a reasonable amount each year. This means the business can look forward to many years of rental increases, which should boost earnings and distributions over time.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is the largest private hospital operator in Australia. The sad reality is that as we get older we are more likely to need to visit a hospital because of a broken bone, injured muscle or serious sickness.
Ramsay offers high-quality care for patients and I’m sure a lot of baby boomers will want to continue to be treated at the best hospitals whilst receiving a high standard of service.
Ramsay is always investing for growth by expanding hospitals or building at new brownfield and greenfield sites.
I think Ramsay is one of the highest quality shares on the ASX.
Zenitas Healthcare Limited (ASX: ZNT)
Zenitas is a small cap healthcare business that provides primary care, allied care and home care.
Many people will be aware that it’s better to work on a problem before it becomes a major issue. That’s why Zenitas’ allied care segment is growing organically at a good rate.
The home care segment is also exciting in my opinion. The government and private health insurers want to keep costs as low as possible, which means keeping patients out of hospital. I’m sure the patient would also prefer to be treated at home, if possible.
I am excited by the long-term growth potential of all three businesses, which is why I’m a shareholder of two of them and I’m keeping an eye on Gateway. Keep in mind that there are still risks with ageing population related stocks and there is no guarantee they will beat the market.
I’m also very interested in one of these top stocks because it is also benefiting from Australia’s growing retiree population.
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Motley Fool contributor Tristan Harrison owns shares of Ramsay Health Care Limited and Zenitas Healthcare Ltd. The Motley Fool Australia has recommended Ramsay Health Care Limited and Zenitas Healthcare Ltd. 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 Scott Phillips.