INVESTUDY.ORG
  • Home
  • ECONOMY
  • STOCK INVESTMENT
  • COMPANY ANALYSIS
  • CRYPTOCURRENCY
  • TAXES/LAWS
  • EDUCATION
  • REAL ESTATE
No Result
View All Result
SUBSCRIBE
INVESTUDY.ORG
  • Home
  • ECONOMY
  • STOCK INVESTMENT
  • COMPANY ANALYSIS
  • CRYPTOCURRENCY
  • TAXES/LAWS
  • EDUCATION
  • REAL ESTATE
No Result
View All Result
Investudy.org
No Result
View All Result
Home STOCK INVESTMENT

This Dividend Stock Yields Over 14%, and Wall Street Thinks It Could Soar 56%

2025-04-25
in STOCK INVESTMENT
This Dividend Stock Yields Over 14%, and Wall Street Thinks It Could Soar 56%
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

You might also like

Essential Economic Indicators You Must Watch to Understand Global Markets

How to Identify Market Tops and Bottoms in the Stock Market

Read the 10-K and 10-Q Reports! A Guide to Essential SEC Filings for Investors

Some stocks generously pay dividends every quarter just for holding them. Others may not offer such perks but possess huge upside potential. However, there aren’t many stocks that fit into both categories.

Medical Properties Trust (NYSE: MPW) (MPT) is an exception. This high-yield dividend stock boasts a yield of over 14%, and Wall Street believes it could surge by 56%.

A Common Underlying Cause

MPT’s high dividend yield and the gap between its current stock price and consensus price target share a common root cause—a sharp decline in the stock’s price. MPT shares have plunged more than 60% over the past 12 months.

Real estate investment trusts (REITs) like MPT often offer high dividend yields, but historically, MPT’s yield has ranged between 4% and 8%. The recent massive sell-off has pushed its yield into the double digits.

MPT’s huge upside potential isn’t due to analysts raising their price targets. Most analysts have maintained a stable outlook for MPT over the past year. The key point is that even though MPT’s stock price has dropped significantly, analysts haven’t adjusted their price targets downward.

Why Did MPT Shares Drop So Much?

There are three major reasons for MPT’s steep decline:

  1. Rising Interest Rates – Since early last year, interest rates have surged. REITs heavily rely on borrowing to finance property acquisitions, making them particularly sensitive to high interest rates.
  2. Tenant Financial Struggles – Several hospital operators renting MPT properties have faced financial difficulties.
    • Pipeline Health went through Chapter 11 bankruptcy restructuring.
    • Prospect Medical has struggled to fully pay its rent this year.
  3. Short-Seller Attacks – The third major reason is the impact of short-selling pressure. Last week, MPT filed a lawsuit against short-seller Viceroy Research, accusing it of making “baseless claims” to drive down the stock price.

Is Wall Street Right?

If MPT stock rises anywhere near Wall Street’s price target over the next 12 months, it would be an undeniable buy. But is Wall Street right? The answer is twofold.

First, I agree that analysts are correct in predicting that MPT stock should rise.

  • MPT has reported good news in recent weeks, including the sale of 11 properties in Australia.
  • Despite Pipeline’s bankruptcy, MPT fully recovered all rent payments from the operator.
  • The sale of a Connecticut facility operated by Prospect Medical is expected to close within a few months.

The overall financial outlook for hospital operators is improving. MPT CEO Ed Aldag stated in the company’s Q4 earnings call that “we see very encouraging prospects for our tenants in every aspect.”

Last week, MPT issued a shareholder letter, where Aldag made a strong case for the company and stock. He emphasized:

  • MPT’s strong underwriting track record
  • A well-diversified portfolio
  • Consistently solid business performance in a challenging market

Will MPT Stock Really Soar 56%?

The second answer to whether Wall Street is right is: maybe. While it’s impossible to predict with certainty that the stock will jump 56% in the next year, it is definitely possible.

However, several factors could hinder such a dramatic rebound, including:

  • Persistently high interest rates
  • A potential economic recession

I expect MPT stock to deliver solid returns next year, though perhaps not as high as analysts predict. I also believe that MPT’s extremely high dividend yield will eventually decrease—not due to a dividend cut, but as a result of a rising stock price.

If I’m right, MPT’s 14%+ dividend yield won’t last much longer.

Recommended For You

Essential Economic Indicators You Must Watch to Understand Global Markets

by investudy
2025-05-07
0

Across the world, both public institutions and private companies release a wide range of economic indicators that reflect the economic health of different countries. Fortunately, websites like TradingEconomics...

Read moreDetails

How to Identify Market Tops and Bottoms in the Stock Market

by investudy
2025-05-07
0
How to Identify Market Tops and Bottoms in the Stock Market

Many online trading platforms provided by securities firms offer a wide range of useful tools, charts, and indicators. Among them, the one I use most frequently is Webull,...

Read moreDetails

Read the 10-K and 10-Q Reports! A Guide to Essential SEC Filings for Investors

by investudy
2025-04-30
0
Read the 10-K and 10-Q Reports! A Guide to Essential SEC Filings for Investors

The 10-K and 10-Q reports are official documents that publicly traded companies are required to file with the U.S. Securities and Exchange Commission (SEC) under U.S. securities laws....

Read moreDetails

How to Calculate Fair Value of a Stock (Intrinsic Value Explained)

by investudy
2025-04-30
0

Fair value is considered the most reasonable price for a stock. It reflects the price or price range at which an asset or liability could be bought or...

Read moreDetails

Palantir: The Ultimate Defense & Tariff-Resilient AI Stock

by investudy
2025-04-21
0
Palantir: The Ultimate Defense & Tariff-Resilient AI Stock

Outperforming Market Momentum Although Palantir experienced a larger drop from its peak compared to the S&P 500 (46% vs 21%), its rebound has been significantly stronger (around 40%...

Read moreDetails
Next Post
Can These 3 High-Yield Stocks Help You Retire as a Millionaire?

Can These 3 High-Yield Stocks Help You Retire as a Millionaire?

Please login to join discussion

Related News

Top 5 Dividend Kings to Buy Right Now

3 Dividend Stocks That Have Paid Investors Since the 1800s

2025-04-25

Individual Retirement Pension (IRP) – Pros and Cons Analysis

2025-04-25
Warren Buffett Quotes

Effort to Prepare for Opportunities

2025-04-25

Browse by Category

  • BONDS
  • BUSINESS
  • COMPANY ANALYSIS
  • CRYPTOCURRENCY
  • ECONOMY
  • EDUCATION
  • REAL ESTATE
  • STOCK INVESTMENT
  • TAXES/LAWS

INVESTUDY.ORG

Learn about the basics of successful investing, the right investment attitude, and how to gain valuable insights for many investors to embark on the path to successful investing.

CATEGORIES

  • BONDS
  • BUSINESS
  • COMPANY ANALYSIS
  • CRYPTOCURRENCY
  • ECONOMY
  • EDUCATION
  • REAL ESTATE
  • STOCK INVESTMENT
  • TAXES/LAWS

BROWSE BY TAG

ai AI Boom Big Tech Stocks Bitcoin BOJ Rate Hike BPS Buffett Cryptocurrencies Currency Trading dividend Economy emotional intelligence relationships equity research etf fair value calculation Fed Tapering fundamental analysis Global Markets how to build meaningful connections intrinsic value Investment Strategies Japanese Interest Rates loneliness vs solitude Market Fear Market Signals NVIDIA Obligation S&P 500 Stimulus Trigger stock investing tips stock market timing stock valuation Strategy technical analysis toxic relationships signs U.S. Stock Market Unemployment Rate US Crypto Regulation value investing Visa Warren Buffett investing when to cut off someone Yen Carry Trade Yen Carry Trade Unwinding 배당주

© 2023 Investudy.org - Stock, cryptocurrency, economic news, and real estate information sharing.

No Result
View All Result
  • Home
  • ECONOMY
  • STOCK INVESTMENT
  • COMPANY ANALYSIS
  • CRYPTOCURRENCY
  • TAXES/LAWS
  • EDUCATION
  • REAL ESTATE

© 2023 Investudy.org - Stock, cryptocurrency, economic news, and real estate information sharing.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?