With Everything On the Table, This 14%-Yielding Dividend Is On the Chopping Block

Medical Properties Trust (NYSE: MPW) is under pressure from all sides these days. The real estate investment trust (REIT) is facing headwinds from struggling tenants and higher interest rates, which are affecting its cash flow and weighing on its balance sheet. These issues have pushed down its stock price, driving its dividend yield up over 14%.

The high-yielding dividend might not last long. That's a clear takeaway from comments by the company's management team on its recent second-quarter conference call.

Medical Properties Trust makes quarterly dividend payments of $0.29 per share. The healthcare REIT currently generates enough cash to cover that payment. It produced $0.41 per share of adjusted funds from operations (FFO) during the second quarter and $0.70 per share through the first half of the year. That gives it an 83% dividend payout ratio. That's only slightly higher than during the same period of last year when its adjusted FFO was $0.72 per share. 

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Source Fool.com