How to invest $5,000 in ASX 200 healthcare shares today

While ASX 200 healthcare shares have generally performed well in 2020, here are my 3 top picks to invest $5,000 in for the long-term.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX 200 healthcare shares have had a broadly strong start to the year. While the S&P/ASX 200 Index (ASX: XJO) is down 19.73% this year, the nature of the coronavirus pandemic has meant that some healthcare companies have climbed in value.

If you've got some spare cash to invest in 2020, here are 3 of my top ASX 200 healthcare shares to buy right now.

3 ASX 200 healthcare shares to buy in 2020

Let's start with one of the biggest companies on the ASX: CSL Limited (ASX: CSL). The CSL share price has climbed 9.46% in 2020 and its market capitalisation has swelled to $138 billion.

CSL is a global biotechnology leader that researches, develops, manufactures, and markets products to treat and prevent serious human medical conditions. CSL has been active despite the pandemic and is even working on a potential plasma treatment with the support of the federal government. 

That could make CSL shares a good buy given its size, 0.96% dividend yield and non-cyclical earnings.

Another top ASX 200 healthcare share to buy at the moment is Ramsay Health Care Limited (ASX: RHC). Ramsay is a private healthcare provider with operations across Australia, the UK, France, Indonesia and Malaysia. The company specialises in surgery, rehabilitation and psychiatric care and its share price was under pressure this year.

In fact, Ramsay shares were trading near their 52-week high of $80.93 in mid-February. However, the COVID-19 pandemic smashed the Ramsay share price to a 52-week low of $46.12 in mid-March, before it recovered 42% to its current $65.51 valuation.

Ramsay shares are yielding 2.35% right now and could be back in the buy zone. With pandemic restrictions being wound back, the potential strain on private healthcare could start to be eased. That means Ramsay's operations could go back to a steady state with the added bonus of non-cyclical earnings in 2020 and beyond.

Finally, the Polynovo Ltd (ASX: PNV) share price could be a good way to invest $5,000 in 2020. Polynovo's patented NovoSorb product helps with the treatment of burns and has had widespread success. In fact, the ASX 200 healthcare share has been rebounding strongly in recent weeks after continuing to post record monthly sales.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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.

More on Healthcare Shares

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Why the Mesoblast share price is diving 18% after an FDA win

Investors are sending the Mesoblast share price tumbling on Friday. But why?

Read more »

A happy doctor in a white coat dancing due to his excitement over the EBOS acquisition
Healthcare Shares

Mesoblast share price rockets 30% on big US FDA news

Big news is giving this biotech a huge lift on Thursday.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

Guess which ASX healthcare stock is jumping 12% on Wednesday

This shares is rocketing this morning. But why? Let's find out.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Healthcare Shares

Here is the dividend forecast to 2029 for CSL shares

Can this blue-chip giant provide healthy dividend income?

Read more »

a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.
Healthcare Shares

The best ASX 200 healthcare stocks to buy in 2025

These shares could give your portfolio a healthy boost next year according to Bell Potter.

Read more »

In the lab at work, the mature adult woman and young adult man smile as they review the results of their successful experimentation.
Healthcare Shares

ASX 300 healthcare stock lifts off on promising new results

Up 28% in a year, the ASX healthcare stock is leaping higher on Thursday.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

If you'd invested $5,000 in this ASX 300 healthcare stock a year ago, you'd now have $30,000!

This stock has made millions for investors over just a few months.

Read more »

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

Has the Pro Medicus share price risen too high too quickly?

Pro Medicus shares have rocketed 173% since this time last year.

Read more »