An in-depth analysis of Medical Properties Trust Inc's dividend history, yield, growth rate, and future prospects
Medical Properties Trust Inc(MPW, Financial) recently announced a dividend of $0.15 per share, payable on 2023-10-12, with the ex-dividend date set for 2023-09-13. 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 deep dive into Medical Properties Trust Inc's dividend performance and assess its sustainability.
Understanding Medical Properties Trust Inc's Business Model
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. The company considers merger and acquisition investment as a component of its operational growth strategy. It provides financing for a variety of facilities that require funds for acquisitions, sale-leasebacks, new developments, and expansion projects.
Medical Properties Trust Inc's Dividend Track Record
Medical Properties Trust Inc has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Medical Properties Trust Inc has increased its dividend each year since 2009. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years.
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 15.53%. This suggests an expectation of decrease dividend payments over the next 12 months.
Medical Properties Trust Inc's dividend yield of 17.66% is near a 10-year high and outperforms than 97.25 of global competitors in the REITs industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Assessing the Sustainability of Medical Properties Trust Inc's Dividend
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 2023-06-30, Medical Properties Trust Inc's dividend payout ratio is 10.55. This may suggest that the company's dividend may not be sustainable.
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 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Medical Properties Trust Inc's Growth Metrics and Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Medical Properties Trust Inc's growth rank of 9 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 8.90% per year on average, a rate that outperforms than approximately 80.25% of global competitors.
Conclusion
In conclusion, Medical Properties Trust Inc's strong dividend yield, consistent dividend growth rate, and solid profitability make it an attractive proposition for income investors. However, the sustainability of its dividends may be a concern due to its relatively high payout ratio. It is crucial for potential investors to consider these factors and their individual risk tolerance before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
