This Ultra-High-Yield Dividend Stock Faces a Long Road to Recovery
Shares of Medical Properties Trust (NYSE: MPW) have cratered nearly 70% from their all-time high a few years ago. That's why the healthcare REIT still offers a more than 8% dividend yield even after recently slashing its payout by almost 50%.
While painful, that dividend cut was necessary medicine. It will allow the healthcare REIT to retain additional cash for debt reduction. However, the hospital owner still faces a long road ahead as it works to fix the issues with its balance sheet and portfolio. Because of that, investors will need to be patient as the company works to rebuild shareholder value.
Despite the significant slide in its stock price, Medical Properties Trust owns a valuable portfolio of hospital real estate. It's one of the world's largest owners of this kind of real estate, with 444 facilities across 10 countries. At the end of the first quarter, it had $19.2 billion in total assets leased or mortgaged to 55 hospital operating companies.
Source Fool.com
