Why Investors Shouldn't Buy This 13%-Yielding Stock for Its Dividend
Dividend stocks offering investors high yields tend to be alluring because the income they generate for shareholders is better than average. However high yields often come with high risks. If a Dividend proves to be unsustainable and a company slashes the payout, investors could be left holding a stock that suddenly doesn't look all that great.
Medical Properties Trust (NYSE: MPW) pays investors a fairly high yield of 13% right now. That's well above the S 500 average of just 1.4%. However, given the changes the company is undergoing right now, that dividend might not be the safest option for income investors.
Still, there are other potentially more enticing reasons to buy shares, provided you're OK with the elevated risk.
Source Fool.com
