MPW - Better Buy: Medical Properties Trust or Physicians Realty Trust?
Medical real estate investment trusts ( REITs ) combine two relatively stable, recession-proof industries: healthcare and real estate.
Spending on healthcare in the United States reached $4.1 trillion in 2020 and, thanks in part to an aging population, it's estimated to reach $6.2 trillion by 2028, according to the Centers for Medicare and Medicaid Services. While increased interest rates have put a damper on home sales lately, medical REITs manage commercial real estate, such as hospitals and doctor's offices. The tenants for these REITs are dependable payers and deliver consistent cash flows to the companies.
Medical REITs are considered good long-term investments because they offer above-average dividends. The average S&P 500 company's dividend yield is 1.82%. In comparison, Medical Properties Trust (NYSE: MPW) has a dividend yield of 9.16%, and Physicians Realty Trust (NYSE: DOC) has a yield of 6.75%.
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Better Buy: Medical Properties Trust or Physicians Realty Trust?