{"id":309255,"date":"2023-01-17T12:03:30","date_gmt":"2023-01-17T17:03:30","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=309255"},"modified":"2023-01-17T13:49:55","modified_gmt":"2023-01-17T18:49:55","slug":"chartwell-unitedhealth-xiu","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/chartwell-unitedhealth-xiu\/","title":{"rendered":"3 Defensive Stocks to Catch the Rebound"},"content":{"rendered":"<p>Real estate, health and the TSX are on this week&#8217;s menu as we favour defensive stocks, but those that can see a rebound, and bank on the Canadian index. So far, 2023 has been positive as inflation eases and China reopens. Investors are growing confident that central banks will raise rates at a slower pace and pause this year. Some even expect rates to peel back after overshooting. However, others remain cautious and expect markets to retest lows once more.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-199738\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/11\/CSH.UN-T-1-760x254.png\" alt=\"CSH.UN-T stock chart\" width=\"860\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/chartwell-unitedhealth-xiu\/#Chartwell_Seniors_Housing_CSHUN-T\" >Chartwell Seniors Housing (CSH.UN-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/chartwell-unitedhealth-xiu\/#UnitedHealth_Group_Inc_UNH-N\" >UnitedHealth Group Inc (UNH-N)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/chartwell-unitedhealth-xiu\/#iShares_S_PTSX_60_Index_ETF_XIU-T\" >iShares S&amp;P\/TSX 60 Index ETF (XIU-T)<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Chartwell_Seniors_Housing_CSHUN-T\"><\/span><a href=\"https:\/\/stockchase.com\/company\/view\/1620\/CSHUN-T\">Chartwell Seniors Housing (CSH.UN-T)<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On Monday, Chartwell announced occupancy rates and projections to more or less remain at 78%, given or take half a point. That&#8217;s disappointing, and a hangover from the pandemic when retirement homes across the board were crushed for obvious reasons. Then, last year&#8217;s wage inflation raised their costs while climbing interest rates didn&#8217;t help CSH&#8217;s debt payments. Nor did labour shortages which drove up costs. So, what&#8217;s there to like?<\/p>\n<p>In 2022, <a href=\"https:\/\/stockchase.com\/company\/view\/1620\/CSHUN-T\">CSH<\/a> <img alt=\"CSH.UN-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/CSH.UN-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/> shares plunged 33%, over three times more than the overall TSX and more in line with a tech stock. Brutal. However, the sell-off was overdone. Chartwell has raised its rents and interest rate increases are slowing. Renewed immigration will ease the labour shortage (and costs). A new marketing plan will help raise the occupancy rate back to the pre-Covid 90%. Long-term, the aging population will continue to favour this operator of luxury retirement homes and push the occupancy rate up.<\/p>\n<p>CSH stock in the past month has jumped 15% and rallied just under 10% so far in 2023. In contrast, the TSX has risen 5% year-to-date and <a href=\"https:\/\/stockchase.com\/company\/view\/3824\/SIA-T\">Sienna Senior Living<\/a> 8.7%. The dividend of 6.52% is inline with sector, though the payout ratio of 3,231% (you read that right) is twice as high as its peers. For now, Chartwell is riding positive momentum after sliding down too far and too fast last year. You&#8217;re buying this defensive stock not for its fundamentals, but as a momentum play. The street remains bullish on the name with five buys and one hold at a price target of $11.33, or 24% higher.<\/p>\n<p><em>(Disclosure: I own shares of Chartwell.)<\/em><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-medium wp-image-241060\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2021\/08\/UNH-N-1-760x254.png\" alt=\"UNH-N stock chart\" width=\"760\" height=\"254\" data-wp-pid=\"241060\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"UnitedHealth_Group_Inc_UNH-N\"><\/span><a href=\"https:\/\/stockchase.com\/company\/view\/1636\/UNH-N\">UnitedHealth Group Inc (UNH-N)<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>American health remains the safest sector where you see great defensive stocks and this long-term performer is steady. Last week, UNH stock beat earnings, fuelled by strong performance from its medical insurance business, double-digit revenue gains from its Optum franchises, and by upholding its full-year forecast. Adjusted profits climbed 19% year-over-year. The company generated $23 billion of free cash flow last year. This marks the fourth-straight quarterly beat for this health stock. UNH pays only a 1.33% dividend yield, but it&#8217;s safe while the 24x PE is reasonable.<\/p>\n<p><a href=\"https:\/\/stockchase.com\/company\/view\/1636\/UNH-N\">UNH<\/a> <img alt=\"UNH-N stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/UNH-N\/chart?labels=tru\" width=\"125\" align=\"right\" \/> is a one-stop shop for health in America by operating insurance, pharmacies and clinics. If there is a caveat, it&#8217;s that possible UNH stock has enjoyed too much of a run lately. However, since Boxing Day have retraced from $530 to $489. The street has 11 buys and three holds at a $602.64 price target which is 23% higher than now.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-137566\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/01\/XIU-T-1-760x254.jpg\" alt=\"XIU-T stock chart\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"iShares_S_PTSX_60_Index_ETF_XIU-T\"><\/span><a href=\"https:\/\/stockchase.com\/company\/view\/1374\/XIU-T\">iShares S&amp;P\/TSX 60 Index ETF (XIU-T)<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Speaking of momentum, the <a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/tsx-closes-above-20000-level-on-gains-of-near-600-pts-year-to-date\/ar-AA16es04\" target=\"_blank\" rel=\"noopener\">TSX has returned to the 20,000<\/a> club after a long absence, and looks poised to inch even higher. While a retest of lows is possible, lower inflation data lately has injected some optimism into the market. China&#8217;s reopening should at least maintain the price of crude oil (though repeating last year&#8217;s $120-a-barrel snapback is unlikely). For those who don&#8217;t wish to pick a stock or a sector, XIU-T comes in handy to capture overall upside.<\/p>\n<p><a href=\"https:\/\/stockchase.com\/company\/view\/1374\/XIU-T\">XIU<\/a> <img alt=\"XIU-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/XIU-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/>stock charges only a 0.18% MER but pays a 3.02% dividend yield. Averaging 3,000,000 shares a day, XIU is fairly liquid, over six times more than, say, <a href=\"https:\/\/stockchase.com\/company\/view\/3336\/XIC-T\">XIC-T<\/a>. The biggest holding here is Shopify which has been quietly making a comeback, followed by Royal and TD, the country&#8217;s biggest banks. Enbridge, CN, BAM and the other banks are also major holdings and well-regarded by investors. XIU is a cautious trade, one that an investor can enter and exit at a profit.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate, health and the TSX are on this week&#8217;s menu as we favour defensive stocks, but those that can see a rebound, and bank on the Canadian index. So far, 2023 has been positive as inflation eases and China [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":309346,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[],"class_list":["post-309255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/309255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=309255"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/309255\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/309346"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=309255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=309255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=309255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}