Dear stockbrokers, dear stockbrokers,

As you probably know, I offer you very resilient dividend strategies with the ProPlus dividend deposit account and the 7% dividend deposit account. I don’t rely so much on the visually appealing monster dividend

– High dividend approach – but on long-term dividend growth.

Well, my US colleague Marc Lichtenfeld ticks a little differently. He wants to see the big number, right away. In the coming days, I will be taking a look at his high-dividend portfolio here in Börse at noon. And at the end of the day we will then know which approach works better. But maybe we also find that it can make sense to pursue two different approaches at the same time?

Because one thing is clear: Dividend stocks have been on the move again since 2021. Based on the current market information, I assume that the trend towards more substance and cash flow in investor portfolios will initially continue in the coming year.

But enough of the theory! Get your first monster dividend here.

Can a 9.7% yield even be safe?

Dear stockbrokers, dear stockbrokers,

I have been working with private investors for over 20 years now, and for about 10 years I have also been providing my information in the context of various market letter publications.

when a stock has a dividend yield in the double digits or above, it’s usually for a good reason. That means the stock and/or dividend is quite risky.

Medical Properties Trust (NYSE: MPW) / (ISIN: US58463J3041) has a yield of 9.7%. Can investors expect the company to be able to sustain such a high yield? Medical Properties is a real estate investment trust (REIT). They lease hospitals and are the second largest non-governmental hospital owner in the world. Most of the 434 properties are in the US, followed by the UK, Switzerland and Germany.

The stock has been hit hard by this year’s decline, which is one reason for the high yield. In April, a short seller published his bearish thesis that the company’s business was slowing and the stock was overvalued. This caused the share price to drop drastically. While the price has recovered somewhat after hitting a low below $10 in October, it is still down 50% from where it started the year.

While the short sellers were right about the direction of the stock price, they were wrong about the deterioration in the company’s business.

Funds from Operations (FFO) reflect results from ordinary activities and are the measure of cash flow that we use for REIT’s. Compared to last year, FFO is expected to increase this year, from $976 million to $1.08 billion. FFO is expected to be the same for next year.

This year, Medical Properties Trust is expected to pay out $694 million in dividends, which translates to a payout ratio of 64%.

For the next year, Wall Street expects the payout ratio to increase to 66% on an expected $713 million in dividend payments.

The stock may have suffered a loss this year, but the dividend is easily covered by FFO. The company also boasts a strong 10-year track record of consistently raising dividends, which again suggests management takes dividend payments very seriously.

So despite the current sky-high yield, Medical Properties Trust’s dividend is safe.

Dividend Security Rating: A

With kind regards

Her

Marc Lichtenfeld

Chief Analyst Dividend Club

PS  I have  also  prepared an exciting presentation for you that you should not miss. You can find more interesting investment tips here.