2024-03-02 07:42:00 ET
With the new bull market in full swing and making waves thanks to frothy bets on artificial intelligence stocks, dividend investors have the same objective as always: Finding safe income streams. But the most rock-solid dividend stocks tend to be expensive for that very reason. It's not much of a risk to bet on entrenched incumbents, so their dividend yields are typically on the low side.
On the other hand, betting on beaten-down players making a turnaround offers the potential for outsize returns in the future, if perhaps in exchange for some anxiety between now and then. That does not make every struggling dividend-paying business a smart investment, however. Here's an example of one very tempting stock to avoid buying right now, whether it's a bull market or not.
There's a smorgasbord of evidence suggesting that Medical Properties Trust (NYSE: MPW) stock will not be able to deliver a reliable stream of cash to its shareholders despite being a real estate investment trust (REIT) in the relatively slow-moving healthcare sector.
For further details see:
Looking for Reliable Dividend Stocks in the New Bull Market? Avoid This Stock.