This Ultra-High-Yield Dividend Stock Got Another Healthy Dose of Good News
Shares of Medical Properties Trust (NYSE: MPW) lost more than 50% of their value last year. That sell-off pushed the real estate investment trust's (REIT) dividend yield to nearly 9%. The company faced two severe headwinds: surging interest rates and concerns about some of its tenants' ability to pay rent.
While interest rates could keep rising this year, the increase should be much more moderate. Meanwhile, the company has gotten good news on some of its ailing tenants. It's growing increasingly likely that the healthcare REIT will be able to maintain its monster dividend.
Medical Properties Trust recently revealed that a bankruptcy court approved Pipeline Health's assumption of the master lease of four hospitals and two medical office buildings in the Los Angles area. The pre-bankruptcy lease rate, annual escalator, the remaining term of about 18 years, and other lease provisions remain unchanged. This outcome showcases the strength of the company's leases, which the court confirmed as a true operating lease instead of a financing arrangement.
Source Fool.com
