10 Best Healthcare Stocks in Canada for April 2024

Healthcare is an industry that is required by all members of society. This has been especially true over the past couple of years during the pandemic. Governments around the world increased their investments in healthcare and medical technology.

As the population continues to grow it is accompanied by rising demand for healthcare. Investing in these stocks provides you with exposure to an essential industry that is often overlooked by most investors.

Whether it is medical equipment and technology, healthcare facilities, or pharmaceuticals, the healthcare sector offers a variety of different fields to invest in. In 2022, healthcare accounted for more than 12% of Canada’s annual GDP or approximately $8,563.00 per Canadian citizen.

Canada’s free public health system is highly regarded around the world. It is one factor that has led Canadians to have an average life expectancy of almost 83 years of age. In this article, we will compare and contrast the 10 best healthcare stocks in Canada for April 2024.

Best Healthcare Stocks in Canada for 2024

1. WELL Health Technologies

Here are some key facts for WELL Health Technologies

• Ticker Symbol: WELL.TO
• Market Cap: $764 million
• 52-Week Trading Range: $2.56 – $5.64
• 1-Year Returns: -23.20%
• TTM PE Ratio: -27.24

WELL Health Technologies is a popular Canadian healthcare technology stock. It provided end-to-end software for medical clinics and hospitals, as well as a telehealth platform for practitioners.

The company owns 85 outpatient clinics across Canada, the most by any single company. On top of that, its software is used in more than 3500 clinics and over 22,000 practitioners across the country.

It also operates in the United States, where it provided omnichannel patient services. These include telehealth visits, ePharmacies, and online billing for patients.

2. Andlauer Healthcare Group

Here are some key facts about Andlauer Healthcare Group

• Ticker Symbol: AND.TO
• Market Cap: $2.01 billion
• 52-Week Trading Range: $37.57 – $55.97
• 1-Year Returns: +1.63%
• TTM PE Ratio: 18.28

Andlauer Healthcare Group is a supply chain management company that transports and distributes various healthcare products. These include but are not limited to medications, drugs, vaccines, and medical supplies.

The company operates nine (9) distribution centers in Canada and even ships to providers in the United States. It has partnerships with major drug companies like Pfizer, Merck, Bayer, and Roche and was instrumental in delivering Pfizer’s COVID-19 vaccines across the country.

Over the past 12 years, the company has seen a revenue CAGR of more than 11%, which might be one reason why the stock can pay out a 0.56% dividend yield.

3. Sienna Senior Living Inc

Here are some key facts about Sienna Senior Living Inc

• Ticker Symbol: SIA.TO
• Market Cap: $882 million
• 52-Week Trading Range: $10.61 – $15.78
• 1-Year Returns: -14.61%
• TTM PE Ratio: 36.11

Sienna Senior Living is one of the largest senior care home operators in Canada. The company owns 42 long-term care communities, 38 retirement residences, and 13 managed residences totaling more than $1.7 billion in assets.

This brand is positioned to do well in the future, with projections of the 85+ age group tripling in Canada over the next 25 years.

The cherry on top is the generous 7.74% dividend yield that pays out a monthly distribution to its shareholders.

4. Chartwell Retirement Residences

Here are some key facts about Chartwell Retirement Residences

• Ticker Symbol: CSH.UN.TO
• Market Cap: $2.35 billion
• 52-Week Trading Range: $7.58 – $13.25
• 1-Year Returns: -18.91%
• TTM PE Ratio: 112.82

Chartwell Retirement Residences is another major player in the senior housing community sector. It is an unincorporated, open-ended real estate trust which owns nearly 200 communities across four different provinces.

With the aging population set to boom in Canada over the next few decades, Chartwell’s properties will be in high demand.

In addition to its future growth potential, it pays a 6.15% dividend yield which pays out a monthly distribution to investors.

5. Bausch Health Companies Inc

Here are some key facts about Bausch Health Companies Inc

• Ticker Symbol: BHC.TO
• Market Cap: $4.04 billion
• 52-Week Trading Range: $5.10 – $33.39
• 1-Year Returns: -63.57%
• TTM PE Ratio: 11.99

Known in the past as Valeant Pharmaceuticals, Bausch was once the most valuable company in Canada. While it is a shadow of its former value, Bausch is still one of the most valuable healthcare companies in the country.

The company develops and manufactures medications for gastroenterology, neurology, and dermatology for sale in over 90 countries around the world.

While the stock had a difficult year in 2022, Bausch still operates several different segments that were profitable, which could mean brighter days are ahead for Bausch.

Related: Best Healthcare ETFs in Canada.

6. Neighbourly Pharmacy Inc

Here are some key facts about Neighbourly Pharmacy Inc

• Ticker Symbol: NBLY.TO
• Market Cap: $990 million
• 52-Week Trading Range: $19.00 – $34.14
• 1-Year Returns: -33.52%
• TTM PE Ratio: 120.17

As this company’s name suggests, Neighbourly Pharmacy is in the business of acquiring and operating neighbourhood pharmacies. In total, Neighbourly operates 284 pharmacies across Canada.

The company continues to acquire new pharmacies at a torrid pace. In 2022, Neighbourly acquired 41 locations, while so far, in 2023, it has already announced 113 new acquisitions.

Neighbourly’s rapid growth has provided enough cash flow to pay out a 0.81% dividend yield to its shareholders.

7. Dialogue Health Technologies Inc

Here are some key facts about Dialogue Health Technologies Inc

• Ticker Symbol: CARE.TO
• Market Cap: $230 million
• 52-Week Trading Range: $2.05 – $6.38
• 1-Year Returns: -38.37%
• TTM PE Ratio: 8.77

Dialogue Health Technologies is a Canadian healthcare software platform provider. It focuses on providing access for employees to employer health plans and benefits.

Its online platform provides employees with access to virtual health services like telehealth appointments and mental health check-ins.

The web-based and mobile app is used by more than 49,000 companies around the world, including Samsung, Canada Life, Sun Life, the National Bank, and VIA Rail Canada.

8. NorthWest Healthcare Properties REIT

Here are some key facts about NorthWest Healthcare Properties REIT

• Ticker Symbol: NWH-UN.TO
• Market Cap: $2.4 billion
• 52-Week Trading Range: $9.30 – $14.42
• 1-Year Returns: -24.05%
• TTM PE Ratio: 8.13

NorthWest Healthcare Properties REIT is a Canadian real estate company that owns 232 healthcare facilities around the world. The locations of these facilities include exotic markets like Brazil, Australia, Germany, and England.

This REIT has an impressive 97.1% occupancy rate with over $10.2 billion in assets under management.

As with most REITs, NorthWest Healthcare Properties REIT pays out a generous dividend yield. It currently sits at 7.99% on an annualized basis, and distributions are paid out monthly to shareholders.

9. Savaria Corporation

Here are some key facts about Savaria Corporation

• Ticker Symbol: SIS.TO
• Market Cap: $955 million
• 52-Week Trading Range: $12.02 – $18.89
• 1-Year Returns: -17.93%
• TTM PE Ratio: 67.24

Savaria Corporation is a company that builds and sells accessibility technology for homes, commercial buildings, and vehicles.

Some of these products include specially designed elevators and stair lifts to assist elderly or disabled people.

The company was founded in 1979 and has since expanded its manufacturing to countries like China, Italy, the Netherlands, and Spain. In the most recent quarter, the company surpassed $200 million in quarterly revenue for the first time.

10. Extendicare

Here are some key facts about Extendicare

• Ticker Symbol: EXE.TO
• Market Cap: $555 million
• 52-Week Trading Range: $6.47 – $8.00
• 1-Year Returns: -7.74%
• TTM PE Ratio: 9.54

Extendicare is yet another Canadian company that specializes in long-term senior care and retirement facilities.

The company owns 53 long-term care homes and manages an additional 50 homes with its Extendicare Assists Consulting division. In total, Extendicare operates a total of 106,989 beds as of January 2023.

As with other senior care companies, Extendicare pays out a generous dividend yield of 7.32% or about $0.48 per share each year.

How to Buy Healthcare Stocks in Canada 2024

The great thing about our list of the best healthcare stocks on the TSX is that they trade on any Canadian brokerage.

If you want to save on trading fees and boost your long-term gains, take a look at some of these best Canadian discount brokerages in 2024.

What are Healthcare Stocks?

Healthcare stocks in Canada are publicly traded companies that operate in some sectors of the healthcare industry.

Some of those sectors include:

• Pharmacies
• Telehealth
• Digital Healthcare platforms
• Medical devices
• Medical facilities
• Senior and long-term care facilities
• Healthcare REITs
• Health insurance

A large number of Canadian healthcare companies are involved in the innovation and advancement of medical technology. As the population ages and life expectancies rise, there is a growing demand for cutting-edge healthcare solutions.

How to Choose Healthcare Stocks in Canada

Choosing healthcare stocks can be tricky, considering how many different sectors they might operate in. It is important to always do your own research and figure out if you truly believe in the vision and performance of the company.

Generally, healthcare companies are always in demand. The same methodology applies to the healthcare industry as it does to other sectors.

Find solid companies that have exhibited good revenue growth. It helps to have an industry moat that makes the company’s product or service essential for its customers.

There are also plenty of Canadian dividend healthcare stocks for income-seeking investors. These include profitable medical technology companies and Healthcare REITs that pay out a high amount of net income in the form of a shareholder distribution.

Downsides of Healthcare Stocks

Despite all of the potential benefits of investing in healthcare stocks, there are some drawbacks. First, the Canadian healthcare industry is highly regulated by both the Provincial and Federal governments. This could have an impact on a company’s financial performance at any given time.

There are also legal ramifications. Patients or customers can take legal action against companies if their product or service was ineffective or even detrimental to their health. These legal battles can have a negative impact on a stock and create bearish sentiment among investors.