Medical Properties Trust Inc: Market-Trumping REIT With Safe, Growing, High-Yield Dividends
December 10, 2021
MPW Stock Is an Attractive Investment
The goal of every dividend hog is to find stocks that provide the holy trinity of investing: growing share prices, high-yield dividends, and rising payouts. One notable inclusion in this enviable pantheon is Medical Properties Trust Inc (NYSE:MPW), a global health-care real estate investment trust (REIT) that had its initial public offering (IPO) in 2005.
The company is known as the leading source of hospital care, with a management team that’s experienced in unlocking the value of hospital real estate.
Medical Properties Trust is a self-advised REIT that acquires and develops net-leased health-care facilities around the world. In fact, it’s the first and only U.S. company to focus exclusively on hospital facilities in the U.S. and around the world. It’s also the second-largest owner of non-government-owned hospitals on the planet. (Source: “June 2021 Investor Presentation,” Medical Properties Trust Inc, last accessed December 9, 2021.)
The REIT’s portfolio currently consists of 442 properties and approximately 45,000 beds in nine countries, with 237 properties in 34 U.S. states (59% of its portfolio). The company’s geographic mix also includes the U.K. (22% of its portfolio), Germany (six percent), Switzerland (six percent), Australia (five percent), Spain (one percent), other countries (one percent), and “other” (two percent).
Of its properties, 71.9% are general acute hospitals, 10.9% are behavioral health facilities, 9.5% are inpatient rehabilitation hospitals, 1.5% are long-term acute care facilities, 1.2% are freestanding ER/urgent care facilities, and five percent are “other.” (Source: “Our Portfolio,” Medical Properties Trust Inc, last accessed December 9, 2021.)
Medical Properties isn’t only diverse by geography and property type; it’s also diverse operationally. Its largest property makes up less than three percent of its total gross assets. (Source: “Investor Relations,” Medical Properties Trust Inc, last accessed December 8, 2021.)
The property portfolio’s weighted average lease and loan maturity is 17.2 years.
Market-Leading Returns to Medical Properties Trust Stockholders
In terms of investment gains, MPW stock’s numbers don’t lie.
|
Total Shareholder Returns |
|
|
1 Year (2019–2020) |
51% |
|
3 Years (2017–2020) |
89% |
| 5 Years (2015–2020) |
161% |
|
10 Years (2010–2020) |
293% |
| 2005 IPO–2020 |
566% |
Here are some other stock market statistics that should instill confidence in Medical Property Trust stock:
|
Outperformance Above the SNL U.S. REIT Healthcare Index* |
|
|
3 Years (2017–2020) |
68% |
|
5 Years (2015–2020) |
161% |
|
10 Years (2010–2020) |
187% |
|
2005 IPO–2020 |
274% |
*After August 1, 2021, the SNL U.S. REIT Healthcare Index was replaced by the MSCI U.S. REIT/Health Care REIT Index.
Dividend Increases for Nine Consecutive Years
As part of its market-leading and sector-leading gains, MPW stock provides reliable, high-yield dividends. Its dividends have increased every year since 2012, from $0.80 per share declared that year, to $1.12 declared in 2021, for an increase of 40%. (Source: “Dividend History,” Medical Properties Trust Inc, last accessed December 9, 2021.)
Chart courtesy of StockCharts.com
In November, the REIT’s board declared a quarterly cash dividend of $0.28 (payable January 13, 2022), for a yield of five percent. (Source: “Medical Properties Trust Declares Regular Quarterly Dividend of $0.28 Per Share,” Medical Properties Trust Inc, November 11, 2021.)
The Lowdown on Medical Properties Trust Inc
There’s a lot to like about Medical Properties Trust Inc. It has a strong balance sheet and a diverse, global portfolio of properties. The company has also reported solid financial results, which investors have rewarded with a steadily growing share price.
Moreover, the REIT’s steady funds from operations allow Medical Properties Trust stock to provide investors with reliable, growing, high-yield dividends.
