Yahoo Finance Medical Properties Trust Inc's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
Medical Properties Trust Inc (NYSE:MPW) recently announced a dividend of $0.15 per share, payable on 2024-05-01, with the ex-dividend date set for 2024-04-19. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Medical Properties Trust Inc's dividend performance and assess its sustainability.
What Does Medical Properties Trust Inc Do?
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Medical Properties Trust Inc is a healthcare facility REIT. The company operates one segment, which owns and leases healthcare facilities. The vast majority of Medical's revenue is generated in the United States, followed by Germany and the United Kingdom. It provides financing for a variety of facilities that require funds for acquisitions, sale-leasebacks, new developments, and expansion projects.
A Glimpse at Medical Properties Trust Inc's Dividend History
Medical Properties Trust Inc has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Medical Properties Trust Inc's Dividend Yield and Growth
As of today, Medical Properties Trust Inc currently has a 12-month trailing dividend yield of 17.66% and a 12-month forward dividend yield of 14.81%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Medical Properties Trust Inc's annual dividend growth rate was -6.60%. Extended to a five-year horizon, this rate increased to -0.60% per year. And over the past decade, Medical Properties Trust Inc's annual dividends per share growth rate stands at 2.60%.
Based on Medical Properties Trust Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Medical Properties Trust Inc stock as of today is approximately 17.14%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Medical Properties Trust Inc's dividend payout ratio is 0.00.
Medical Properties Trust Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Medical Properties Trust Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Medical Properties Trust Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Medical Properties Trust Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Medical Properties Trust Inc's revenue has increased by approximately -14.80% per year on average, a rate that underperforms approximately 92.38% of global competitors.
Concluding Thoughts on Medical Properties Trust Inc's Dividends
In conclusion, while the high dividend yield of Medical Properties Trust Inc may be attractive, the negative dividend growth rate and the underperformance in revenue growth raise questions about the long-term sustainability of such payouts. However, the company's strong profitability rank and the absence of a payout ratio indicate that Medical Properties Trust Inc is currently managing its dividends responsibly. Investors should keep an eye on future earnings reports and management's strategic plans to better gauge the company's ability to maintain its dividend payments. For those seeking to expand their portfolio with high-dividend yield stocks, the High Dividend Yield Screener available to GuruFocus Premium users can be a valuable tool.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
