Medical Properties Trust (NYSE: MPW) is a high-yielding dividend stock that might look safe right now. At 13%, it offers investors a mouthwatering payout, in large part because its share price has tumbled more than 50% during the past 12 months.

The healthcare-focused real estate investment trust (REIT) has funds from operations that are strong enough right now to support its dividend, suggesting this could make for a good contrarian buy. But investors shouldn't feel too comfortable with the dividend and the stock as a whole. And assuming everything is fine could prove to be a costly mistake.

The big danger for Medical Properties investors is the possibility that the REIT's performance will get worse, perhaps there will be more tenant defaults, and then there will be a dividend cut. But the reality is that management could very well reduce the payouts before all those things happen. It will, after all, see the problems ahead before investors see them reported in the financial statements.

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Source Fool.com