3 Healthcare Stocks Providing Relief for the Sandwich Generation

Key Points

• Omega Healthcare Investors offers income investors a 5.8% yield backed by rising demand for senior housing and skilled nursing facilities.
• Addus HomeCare provides direct exposure to the fast-growing home healthcare market with strong earnings growth and over 40% implied upside.
• Savaria taps into the aging-in-place trend with accessibility solutions and a monthly dividend, making it a unique growth and income play.

The aging of America continues to be an investable theme. And recent survey data from AARP gives investors a hint on where to direct their capital.

According to AARP, about 59 million Americans provided care for an adult family member, neighbor, or friend in 2024. That totaled 49.5 billion hours of care at a cost of around $1.01 trillion in annual economic value—a figure that exceeds the total for federal, state, and local Medicaid spending. 

This is a complex reality for caregivers in the “sandwich generation” who are in their 40s to early 60s. In many cases, they are balancing raising a family of their own, caring for elderly loved ones, and managing careers.

But in many cases, informal caregiving remains the more affordable alternative to institutional or assisted living arrangements. These options often require Medicaid approval for those who qualify based on income and asset limits, or they result in significant out-of-pocket expenses for those who don't.

The U.S. Census Bureau estimates the 65-and-older population will nearly double by 2060. This is why investors should consider healthcare stocks with business models that provide relief for caregivers.

Omega Healthcare Investors Delivers Income as Senior Housing Demand Rebounds

Omega Healthcare Investors NYSE: OHI is a real estate investment trust (REIT) that owns and manages healthcare-related facilities, including skilled nursing facilities and assisted living communities. It acquires and leases these properties under triple net agreements, in turn providing investors with stable, inflation-protected cash flow.

According to the National Investment Center for Seniors Housing & Care, senior housing, assisted living, and independent living occupancy rates are nearly back to pre-pandemic levels, suggesting that demand for those services is strengthening.

After a run-up of almost 25% in the last 12 months, OHI stock looks to have much of that growth already priced in. However, a moderate pullback in the past month helps strengthen the buy case. Analysts have been raising their price targets, but the consensus price target of $48 is only slightly higher than the OHI price as of this writing.

Many investors turn to REITs because of their reliable dividend payments. In the case of Omega Healthcare, the dividend yield is 5.8% and looks sustainable based on future earnings and cash flow estimates.

Addus HomeCare Is Positioned for Growth as In-Home Care Gains Traction

Addus HomeCare NASDAQ: ADUS leans directly into the current need for home health care. Addus is a leading provider of home- and community-based care services that operates through a network of company-owned and franchise locations in the United States.

Shares of ADUS are down about 7% over the past year, but that might be a function of the company’s ongoing battle with states to secure Medicaid dollars. Addus has argued that personal care can be materially less expensive than nursing home placement, thereby conserving Medicaid dollars.

To that end, the company recently noted that Medicaid redeterminations are easing, which can provide a tailwind.

Addus posted year-over-year revenue and earnings growth in the last several quarters. That’s expected to continue, with analysts forecasting over 16% earnings growth in the next 12 months.

Despite a solid earnings report in November, ADUS stock sold off sharply and is trading near its 52-week low. That’s where investors may have an opportunity. Analysts are bullish with a consensus price target that is more than 40% higher than recent prices. The stock currently receives a Moderate Buy rating.

Savaria Capitalizes on Aging-in-Place Trend With Accessibility Solutions

Savaria OTCMKTS: SISXF straddles the line between industrial stocks and medical stocks. The company sells home-accessibility products (e.g., stairlifts, elevators, and platform lifts) that support the aging-in-place industry.

Savaria’s products are on the front line of the home healthcare movement. Many family members or caregivers will initially look to make modifications to a loved one’s home before taking steps to find alternate living or care arrangements.

This trend is reflected in the company's revenue and earnings estimates, which partially explain why SISXF is up more than 90% over the past 12 months. The Canada-based company doesn’t receive heavy analyst coverage, but MarketBeat's data shows a Buy rating.

Adding to the appeal of SISXF is its monthly dividend, which paid out 4.67 cents per share in March 2026. That makes this stock a savvy choice for investors looking for a reliable compounder with the potential for future growth.