High-Yield Dividend Stocks: Medical Properties Trust (MPW)
Sector: Real Estate Investment Trusts
Dividend Yield: 6.3%
Market Cap: $2.2 billion
Longtime readers will know that I regularly tout the buy-and-hold potential of medically focused REIT investments for both reliable income and organic growth thanks to the aging Baby Boomer population. As demographics create more older Americans over the coming years and an increased demand for healthcare services for those folks, medical office centers and hospitals and senior living facilities will be a great place to stash your cash.
Among the best medically focused REITs right now, I like Medical Properties Trust (MPW). Sure, the company has sold off about 12% in the last 12 months. But MPW is actually just sitting in the dividend stocks bargain bin.
Why? Well, revenue has doubled from fiscal 2010 to fiscal 2013 thanks to 11 acquisitions in recent years — including properties in Germany to add diversification to its holdings beyond a big U.S. presence. Profit growth has slowed lately, but the attractiveness of “bond-like stocks” will send buyers to MPW and the long-term demographic pressures should mean a strong play for years to come in this medical REIT.