No Surprise: This Ultra-High-Yielding Dividend Stock Cuts Its Payout Again
Medical Properties Trust (NYSE: MPW) has offered a double-digit dividend yield for over a year. That big yield was a sign that the market didn't believe the real estate investment trust (REIT) would be able to maintain its dividend level, even after cutting it by nearly 50% last August.
The market's skepticism proved to be correct. The healthcare REIT is indeed reducing its dividend again. The cut, which could prove temporary, is due to the bankruptcy of its top tenant.
Medical Properties Trust has spent the past few years working simultaneously to address two issues. Its two largest tenants have been under a lot of financial pressure, which has impacted their ability to make full rental payments. Their issues, along with surging interest rates, have forced the REIT to take steps to shore up its liquidity, with an initial aim to raise $2 billion this year.
Source Fool.com
