Why Is Medical Properties Trust's Dividend So High?
Medical Properties Trust (NYSE: MPW) had an adjusted funds from operations (FFO) payout ratio of 81% in 2022. That's a reasonable coverage number for a real estate investment trust (REIT).
So why are investors so negative on the stock that the dividend yield now hovers around an eye-catching 11%? To find out, you just need to look at the tenant roster.
Providing healthcare services has generally been a fairly consistent and reliable business over time. Generally speaking, a person doesn't go into one of the over 440 hospital properties that REIT Medical Properties Trust owns for the fun of it. Demand for the services these properties provide is largely necessity-based.
Source Fool.com
