Medical Properties Trust (NYSE: MPW) has been a terrific investment lately. Not only has the stock risen almost 80% in the past two years and soundly outperformed the S&P 500 and its roughly 20% returns during that time, but the company also pays a dividend currently yielding 4.6% annually. With the stock around an all-time high, investors may be wondering just how safe an investment Medical Properties is. Let's have a closer look and find out.
Buying stocks near their 52-week highs can be unappealing to some investors, let alone buying them at their all-time highs. The markets as a whole have been very bullish over the past few years, and Medical Properties has clearly benefited from that. However, Fools know that great investments can set many all-time highs before they're done, so that's not a reason in itself to stay away.
Medical Properties is a real estate investment trust (REIT), and over the past few years it has achieved terrific growth. In 2018, funds from operations (FFO) -- the equivalent of earnings for a REIT -- rose 19% to $485 million, and they've more than quadrupled from 2014's FFO of $107 million.