Will Medical Properties Trust Cut Its Ultra-High Dividend? 3 Reasons Not to Worry
There are dividend stocks. And there are ultra-high-yield dividend stocks. You can put Medical Properties Trust (NYSE: MPW) in the second group -- and put extra emphasis on the "ultra" part. Its dividend yield currently tops 15%.
Anytime a dividend yield gets that high, the inevitable question will be raised: Is a dividend cut coming? I think that's an appropriate question to ask in this case. Will Medical Properties Trust be forced to cut its ultra-high dividend soon? Here are three reasons not to worry.
Let's first address the 800-pound gorilla in the room for Medical Properties Trust. That gorilla's name is Prospect Medical. In Medical Properties Trust's recent quarterly update, CFO Steven Hamner revealed that Prospect has not paid its full rent for January and February 2023. The low end of Medical Properties Trust's guidance range for 2023 even assumes that Prospect won't pay any rent this year.
Source Fool.com
