UPDATE: Medical Properties Trust: 11.26% Yield - The Risk is Priced In | FAST Graphs

Update: Medical Properties Trust (MPW) is very cheap now. It got even cheaper after the earnings call on 24 February when worries around Prospect became full-blown and the share price plummeted by 13.6% in just two days from $12.21 as of close on 23 February 2023 to close at $10.55 on 24 February 2023.

However, "cheap" should not be confounded with "value" as many stocks are cheap for good reasons. If the fundamentals are not present to support a long-term thesis, "cheap" can get cheaper. Remember General Electric (GE)? Was GE cheap in 2008 when it traded at a PE of 10? Without counting the dividends, an investor would have been holding the bag at a -0.8 loss after 15 years. And even with the dividends, it will just be a mere 3% total annualized rate of return at a time when S&P 500 returned 8.47% in the same period.

Medical Properties Trust's dividend at the 2022 rate of $1.16 is safe even if Prospect, its third-largest operator, does not pay a single cent in 2023.

The overexposure to Steward is being addressed with definitive actions, lowering it from 30% to 24% of its total annual revenue.

Medical Properties Trust's balance sheet will be shored up by the end of 1H 2023, bringing its cash and cash equivalent to among the highest level in its entire history in existence.

Medical Properties Trust is so undervalued right now that the downside is limited, while the upside is far greater.

Here is a link to February 22 article and video on MPW:
https://fastgraphs.com/blog/medical-properties-trust-9-current-and-growing-dividend-yield/

Here is a link to the article that goes along with THIS video:
https://fastgraphs.com/blog/update-medical-properties-trust-11-26-yield-the-risk-is-priced-in/

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