Is This 13%-Yielding Stock Due for a Dividend Cut?
A divided yield of more than 10% can appear enticing for investors who are seeking a high level of recurring income. And while a stock that pays that much can generate a lot of income for you, it may not be the safest option to put in your portfolio. Stocks with yields that high often come with inherent risks. If they were safe investments, investors wouldn't hesitate to buy up such high-yielding payouts, which, in turn, would likely boost their share prices and shrink their yields. When a stock's yield remains high, that usually means there's ample reason to remain cautious about the investment.
One high-yielding stock that isn't getting much love these days is Medical Properties Trust (NYSE: MPW), which pays investors nearly 13% in dividends. But the real estate investment trust (REIT) has been one of the riskier income stocks to own this year, and its shares are down about 5% so far this year. Could investors simply be bracing for another dividend cut?
The problem with Medical Properties Trust (MPT) is that the company has been selling off assets in order to improve its cash flow position. That's not a great sign for a dividend stock. It effectively tells investors that it isn't generating sufficient cash to maintain its day-to-day operations and pay its dividend.
Source Fool.com
Medical Properties Trust Aktie
4 Buy-Einschätzungen und 4 Sell-Einschätzungen halten sich bei der Aktie die Waage.
Ein negatives, wenn auch bescheidenes, Potenzial für Medical Properties Trust mit einem Kursziel von 4 € im Vergleich zum aktuellen Kurs von 4.4 €.
