Income Investors: Avoid This 14%-Yielding Dividend Stock and Buy This 9.5% Yielder Instead

Income investors must tread lightly when a stock's dividend yield is around double digits. It's often a warning sign that the market doesn't believe the payout is sustainable.

A dividend cut is certainly on the table for Medical Properties Trust's (NYSE: MPW) ultra-high-yielding payout, and that means income-focused investors should avoid the healthcare REIT. However, the opposite is true for Energy Transfer's (NYSE: ET) massive distribution, which seems likely to keep rising. That makes it an optional choice for those seeking a sizable passive income stream.

Shares of Medical Properties Trust have tumbled more than 40% from their 52-week high because of headwinds from higher interest rates and tenant-related issues. That has driven its dividend yield up over 14%.  

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Source Fool.com