Avoid Buying This Ultra-High-Yield Dividend Stock Until After This Catalyst
Medical Properties Trust (NYSE: MPW) recently declared its latest dividend payment. On the one hand, the $0.08-per-share payout puts its dividend yield at more than 7%. However, that payment was nearly 50% below last quarter's level and more than 70% below where it was in the middle of last year.
The driving factor of the healthcare REIT's most recent reduction is the impact of the bankruptcy of its top tenant, Steward Health Care. It's currently working to exit that troubled relationship. That will likely take some time, which is why income-focused investors should avoid this REIT until it puts Steward in the rearview mirror.
Medical Properties Trust has been working with Steward for years to help shore up its financial situation. Unfortunately, that hasn't been enough to prevent the hospital operator from filing for bankruptcy. Steward's financial situation is so dire that the company plans to sell off its operations at 31 hospitals to repay its creditors, which include Medical Properties Trust.
Source Fool.com
