1 Beaten-Down Dividend Stock to Avoid in 2024, and 1 to Consider Buying and Holding Forever
Buying dividend stocks that have seen better days can be a great way to ensure you're exposed to the possibility of gain from a turnaround. It's also a great way to get a higher yield on your shares than you would otherwise, and that can add up to make for a big benefit over time.
But not every recently tarnished dividend stock is a smart purchase. In fact, many will burn your money and dash your hopes for passive income. So here's one example of a dangerous dividend stock to avoid, and one that's a solid choice for a long-term hold.
Shares of Medical Properties Trust (NYSE: MPW), a healthcare real estate investment trust (REIT), are down by 76% in the last three years. That's a big part of the reason its forward dividend yield is upwards of 27%. Critically, this isn't a stock to buy on the dip to capture its outsized yield. It's one to examine as a lesson for what to look out for and avoid.
Source Fool.com
