This Ultra-High-Yield Dividend Stock Thinks Its Shares Are Widely Undervalued
Shares of Medical Properties Trust (NYSE: MPW) have been under tremendous pressure this year. The hospital-focused real estate investment trust (REIT) has lost a staggering 55% of its market value, pushing its dividend yield into the double digits. The primary factor weighing on shares is surging interest rates. That's impacting the company's ability to raise capital at attractive rates, throwing a wrench in its growth strategy.
The REIT believes the market has overreacted and recently launched a $500 million share repurchase program to retire some of its wildly undervalued shares.
Medical Properties Trust has been expanding rapidly in recent years. The healthcare REIT completed $3.9 billion of investments in 2021, growing its portfolio's gross asset value to $22.3 billion. Those deals helped drive double-digit growth for its adjusted and normalized funds from operations (FFO) per share.
Source Fool.com
