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As the population grows older in Canada and around the world, Canadian healthcare companies are going to be relied upon to supply medications and products to Canadians and customers worldwide.

The major benefit to this from an investing standpoint is the fact Canadian healthcare stocks will inevitably post higher revenues and, as current investors hope, more profits. New investors in the process of learning how to invest in stocks often flock to healthcare stocks, more than likely due to their potential to provide better-than-average returns.

According to the Government of Canada, in 2014 approximately 6 million Canadians were aged 65 or older. This represented about 15.6% of the population. The article goes on to state that by 2030, less than two decades later, this number will balloon by over 50% to 9.5 million.

The average life expectancy of a Canadian woman is also expected to rise to a whopping 86.2 years old.

Rapid spending means good things for the top healthcare stocks

Healthcare expenditures make up a double-digit percentage of our GDP here in Canada. In 2019, healthcare spending hit a whopping $264B. In 2021 this number hit $308B.

Although this revenue certainly isn't the total addressable market for the stocks on this list, there is no doubt they're going to benefit from an increase in spending and overall an increase in the older population here in Canada.

The pandemic also brought to light numerous deficiencies in our healthcare system, ones the government might look to alleviate as we move forward. When we think of the pandemic, we think of many US healthcare companies like Pfizer and Moderna. And while US pharmaceuticals are often more mature companies, there is still plenty of potential here in Canada if you want exposure.

So, how can you take advantage of an aging population, a rising population, new medicine, medical devices, and medical technology making our lives easier? Well, you can invest in the top Canadian healthcare stocks! Lets have a look at 3 of the best healthcare stocks in this article.

Savaria (TSE:SIS)

By definition, Savaria Inc (TSX:SIS) is an industrial stock. However make no mistake about it, they are a healthcare play that is in a prime position to take advantage of an aging population. Most investors view healthcare stocks as primarily drug manufacturers.

And while those stocks typically provide your best chance to hit a home run in terms of returns, arming your portfolio with different industries of the healthcare sector can be extremely useful. Savaria provides just that. The company develops, markets, and manufacturers products for those who have mobility issues.

Up until 2021, Savaria had been somewhat of an underperformer. It was plagued with inconsistencies in terms of results and also frustrated shareholders with constant share dilution. However, it is now simply caught up in a small cap selloff and is presenting relatively strong value at the time of writing.

In early 2021, the company made a transformational acquisition of Handicare, a European company that specializes in mobility products. Handicare is responsible for the production of over 45,000 stairlifts annually, and the mega-merger will make Savaria a true global leader when it comes to mobility products.

Considering the average age here in Canada and even globally is expected to rise considerably over the next 20-30 years, more and more consumers will be needing the exact products that Savaria offers.

The company is expected to double revenue over the next few years thanks to the Handicare acquisition, and earnings are expected to grow at a mid double-digit pace as well.

It seems like after years of underperformance, Savaria could finally turn the page and is putting up some strong results. As an added bonus to its growth, the company pays out a high 3% monthly paying dividend, one that is well covered by cash flows.

Well Health Technologies (TSE:WELL)

If you're looking for a company with explosive growth potential, then Well Health Technologies (TSE:WELL) will certainly appeal to you.

So what does Well Health do? The company owns the largest single-chain network of care clinics in British Columbia. Along with that, they provide EMR (Emergency Medical Records) services to hundreds of medical clinics. This means thousands of doctors, nurses and healthcare workers benefit from WELL's products but more importantly, over 15 million patients.

The company has 83 clinics here in Canada and the United States. In terms of staffing, the company deploys over 2300 healthcare providers.

The company is primarily a digital health company, or telehealth as many like to call it. Instead of going into the doctor, patients have the ability to be diagnosed right from home. This type of medical care was amplified during COVID-19 shutdowns, and caused Well Health's popularity to soar.

The company is backed by one of the richest men on the planet, Sir Li Ka-Shing, who has been known to invest in other strong companies like Spotify and Facebook.

The company is very acquisition heavy and has completed some transformational acquisitions over the years, including CRH Medical in mid-2021. Not only did the acquisition of CRH significantly boost Well Health's revenue, but it also gave them deep access to the U.S. healthcare system. The company also made a recent acquisition of CloudMD (TSEV:DOC) EMR, billing, and clinic assets.

This is a very young company, capable of significant growth, yet significant volatility. Revenue growth is skewed by acquisitions, expected to increase by significant amounts over the next few years. However, the company is also profitable on an adjusted EBITDA basis.

There has been a significant reset in the valuations of telehealth and digital health companies. So if you're interested in owning Well Health, there arguably has never been a better time.

Andlauer Healthcare Group (TSE:AND)

Andlauer Healthcare Group Inc is an investment holding company in the healthcare industry. It operates in two segments namely Specialized Transportation and Healthcare Logistics. The company generates maximum revenue from the Specialized Transportation segment. 

Its Specialized Transportation segment provides specialized temperature-controlled services to healthcare customers. The company's transportation products include ground transportation, air freight forwarding, and dedicated and last-mile delivery. 

The Healthcare Logistics segment provides contract logistics services for customers, including logistics and distribution, and packaging.

The company has a market cap of just over $2B at the time of writing, and is partnered up with 25 of the top global pharmaceutical manufacturers in Canada. It IPOed in 2019 and has witnessed some very strong growth over the last 10-12 years.

It has a compound annual growth on revenue of 11.5% since 2010 and is driving a large amount of growth through acquisitions. In 2021 it made two significant moves, acquiring Skelton and Boyle Transportation. Both of these companies operate transportation services to life sciences and government and defense sectors.

58% of the company's revenue comes from services like this, transportation. 22.9% of revenue comes from things like inventory management and fulfillment for clients.

Since its IPO in 2019 on the Toronto Stock Exchange, the company's stock price has more than doubled. In terms of pharmaceutical companies in Canada, it's one of the better performers. It does pay a dividend, but with a dividend yield of only 0.58%, it's not going to be appealing to many income investors.

Analysts expect high, single-digit growth from this company moving forward.

Roundup

While most of the options on this list are small to mid cap players, we don't really have any large scale healthcare stocks here in Canada. If you want something like that, you'll have to head south of the border where you'll find plenty.

But, I wouldn't be shying away from looking at these 3 options just because they're small in stature. All 3 are in explosive industries growth wise, and should be able to provide long standing returns to investors in the future.

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