2023-10-13 08:20:00 ET
Medical Properties Trust (NYSE: MPW) has been a hot topic of conversation among income-focused investors in 2023. Unfortunately, I suspect that some overeager traders might end up getting less yield than they expected while holding shares of a medical real estate investment trust (REIT) with less than ideal financials.
Specializing in hospital facilities certainly hasn't spared Medical Properties Trust from the toll taken by higher-for-longer interest rate policy. A quick glance at the chart reveals that Medical Properties Trust stockholders have suffered from share-price erosion in 2023, not unlike the deterioration witnessed in non-medical REIT stocks such as Realty Income Corp. and Simon Property Group .
When share prices decline, juicy dividend payments can serve as a consolation prize for despondent investors. Yet, in the case of Medical Properties Trust, an executive's seemingly offhand comment may indicate an openness to further yield rug pulls down the road.
For further details see:
Everyone Is Talking About This Stock. Is It a Good Long-Term Option?