Medical Properties Trust, Inc. Raises Cash Payment to Shareholders
MPW Stock Increases Dividend by Four Percent
High yield stocks are usually not known for providing much dividend growth, but there are exceptions, with Medical Properties Trust, Inc. (NYSE:MPW) stock being the latest example.
MPW is a real estate investment trust (REIT) that specializes in healthcare properties. On Thursday, February 15 after the closing bell, Medical Properties Trust announced that its Board of Directors has approved a four percent increase in the company’s quarterly dividend rate to $0.25 per share. The dividend is payable on April 12, 2018, to shareholders of record as of March 15. (Source: “Medical Properties Trust Increases Regular Quarterly Dividend by Four Percent to $0.25 Per Share,” Medical Properties Trust, Inc., February 15, 2018.)
With the new dividend rate, MPW stock offers an annual dividend yield of 8.0%.
To put it in perspective, the average dividend yield of all S&P 500 companies right now is just 1.8%.
Other than offering a yield more than four times the benchmark’s average, this healthcare REIT also stands out in terms of dividend growth. Over the last five years, MPW stock’s quarterly dividend rate has increased by 25%. (Source: “Dividend History,” Medical Properties Trust, Inc., last accessed February 15, 2018.)
“Today’s declaration marks the fourth consecutive year of a cash dividend increase,” said MPW’s Chairman, President and Chief Executive Officer Edward K. Aldag, Jr. in a press release on Thursday. “This action reflects our confidence in MPT’s robust investment pipeline, even considering temporary dilution from possible joint venture arrangements that we have previously described.” (Source: Op. cit.)