2024-05-24 04:47:00 ET
When a dividend stock's yield is exceptionally high, there's usually some concerning cause behind the elevation. If a dividend was considered safe, investors would be buying up the high-yielding stock, pushing the share price up and the yield down. When that isn't happening, it can often be a sign that investors are not optimistic about the company's ability to continue paying such a high dividend.
Medical Properties Trust (NYSE: MPW) currently pays its investors a dividend that yields nearly 15%. That's far higher than the S&P 500 average of 1.4%. And that's even after the real estate investment trust (REIT) reduced its dividend payments last year.
Given the REIT's high yield and that it still faces issues with select tenants, should investors brace for the prospect of yet another dividend cut this year?
For further details see:
Is Another Dividend Cut Coming for Medical Properties Trust?