The 3 Best TSX Stocks to Buy Before November 2021

It has been an incredibly strong month for the TSX Index of stocks. The index is up over 4% in …

| More on:

It has been an incredibly strong month for the TSX Index of stocks. The index is up over 4% in October, and it has enjoyed consecutive winning sessions for more than two weeks straight. Yet, with many stocks near all-time highs, you might be wondering how and what to invest in next?

Well, one perennially strong sector is healthcare. Despite, its trustworthy public health system, Canada just does not have a bustling private healthcare sector. As the pandemic revealed, Canadians often rely on our neighbours in the U.S. to access new health technologies and therapies.

Yet, fortunately, Canada does have some smaller up-and-coming businesses that are set to strongly benefit from health-related tailwinds for years ahead. Here are three health-focused TSX stocks that look like attractive buys now and for long into the future.

A TSX growth stock

Over the past decade, healthcare has been steadily shifting its focus on the treatment of ailments to a focus on holistic health, lifestyle choices, and prevention. One TSX stock that benefits from this trend is Jamieson Wellness (TSX:JWEL). It is Canada’s number one manufacturer and marketer of vitamins and supplements.

The exciting part is that it is becoming a global leader in supplements. Over the past few years, it has been building out strong sales channels in Asia and particularly China (a market many multiples the size of Canada).

This has propelled annual sales growth of around 13% over the past few years. Likewise, adjusted EBITDA has compounded on average by over 17%! Over the past four years, this TSX stock has returned 120% to shareholders. Also, in that time, it has also paid a nice growing dividend. Today, this TSX stock yields 1.5%. For income and growth, this is a great stock to buy and hold for years to come.

A new IPO focused on health logistics

Andlauer Healthcare Group (TSX:AND) is a new TSX stock listing that looks interesting. It provides the backbone infrastructure for Canada’s healthcare and pharmaceutical supply chain.

It operates coast-to-coast shipping, storage, and distribution network for a majority of the pharmaceutical goods that come into Canada. Given its highly optimized logistics network, the company has a strong competitive moat. It has the scale, infrastructure, relationships, and expertise to dominate its transportation niche.

For the past 10 years, Andlauer has grown revenues by a compounded annual rate of 10%. Over the past five years, EBITDA has accelerated at a slightly faster 10.5% compounded annual rate. Yet, in that time frame EBITDA margins have increased from 23.5% to over 25% today.

Not only is this TSX stock growing, but it is getting more profitable. This company trades at a fair valuation today and should provide a nice balance of organic and acquisition growth going forward.

A TSX healthcare stock paying a great dividend

NorthWest Healthcare Properties REIT (TSX:NWH.UN) also plays an important role in the infrastructure of healthcare across the world. It operates 190 hospitals, medical offices, and life science properties across Canada, Brazil, Australia, and Europe.

Given the critical nature of these properties, they enjoy very long leases and stable +97% occupancy. Similarly, nearly 75% of its assets have inflation-indexed leases, so its rents are hedged against input costs rising.

NorthWest has been pivoting to a joint-venture model where it helps acquire and manage desirable health properties for institutional investors. This has helped the REIT improve its debt metrics and steadily improve its cash flow per share growth profile.

Today, this TSX stock pays a $0.0667 per unit distribution every month. That equals an attractive dividend yield of 6%. That is a pretty attractive income return for owning some of the best healthcare assets in the world.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Robin Brown owns shares of JAMIESON WELLNESS INC. The Motley Fool owns shares of and recommends Andlauer Healthcare Group Inc. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Stocks for Beginners

construction workers talk on the job site
Energy Stocks

Best Stock to Buy Right Now: Baytex vs Suncor?

Suncor and Baytex stocks both look like solid companies offering growth and dividends. But which is the better buy?

Read more »

profit rises over time
Top TSX Stocks

3 Reasons to Buy Enbridge Like There’s No Tomorrow

Have you considered buying Enbridge (TSX:ENB)? Here are 3 reasons to buy Enbridge today for lasting growth and income.

Read more »

An investor uses a tablet
Stocks for Beginners

If I Could Only Buy 2 Stocks in the Last Half of 2024, I’d Pick These

I’m looking to buy two stocks over the next month. Here’s a look at my picks and why you should…

Read more »

dividends grow over time
Stocks for Beginners

The Smartest Growth Stock to Buy With $2,000 Right Now

Do you have $2,000 to invest for the long term? These three TSX stocks have and will continue to deliver…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »

grow money, wealth build
Dividend Stocks

3 Top High-Yield Stocks to Buy in November

If you want passive income, high yield dividend stocks are the clear choice. These are the best, and safest, out…

Read more »

Stocks for Beginners

Where will Loblaw Stock be in 5 Years?

Want a great food stock that can provide growth and income? Here's why Loblaw stock can offer that and more.

Read more »