Menu
Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

1 Question Investors Should Ask Themselves Before Buying Medical Properties Stock


Medical Properties Trust (NYSE: MPW) offers an incredible dividend yield of 12.6%. At that rate, you could collect $1,000 in dividends annually by investing less than $8,000. Sounds great, right?

However, the yield only looks that way because the business hasn't been doing all that well; shares of Medical Properties Trust are down 42% in just the past year. And before you consider buying the stock, you should ask yourself one thing.

A high dividend yield sounds great, but if a business is struggling and it pays 12% while the share price falls by 20%, you're effectively in a worse position even with the dividend. Consider that over the past year, Medical Properties has declined 42%, meaning the total returns (including dividends) are still a net negative 36%. Over five years, the total returns are still a negative 9%.

Continue reading


Source Fool.com

Like: 0
MPW
Share

Comments