Medical Properties Trust: 9% Current And Growing Dividend Yield


  • MPW’s dividend is safe. It is in the hospital business, a mission-critical industry where hospital bankruptcies happen but infrequently compared to other industries.
  • MPW has rent escalators built into the contracts, and rent revision happens at the start of every year so shareholders can expect greater rental collection revenue from 2023.
  • MPW can comfortably pay dividends at the 2022 rate even if 50% of Steward’s hospitals get into trouble and are unable to pay 50% of the rent.
  • MPW is so undervalued right now that the downside exposure is limited, while the upside is far greater, thanks to management’s efforts to address concerns by reducing exposure to Steward.
  • Trust MPW’s management to do right by shareholders because its self-interest is highly aligned with shareholders and the betterment of the company. If they wish to profit from their stock award, MPW has to do well.


Now, much ink has been spilled over Medical Properties Trust (MPW) since 2021. The average of 2 articles per month between January 2021 to January 2022 increased more than 3x to an average of 7 articles per month between February 2022 to 17 February 2023. It will be an understatement to say that investors both long and short this stock are interested in it.

In this article, we shall examine the investment thesis of Medical Properties Trust from the point of view of an Income Investor. We will examine the possible thesis-breaking arguments that threaten the dividend, study the FFO forecasts done by analysts who follow Medical Properties Trust , establish if these forecasts may hold up (or not) in different scenarios, and examine management’s stewardship of Medical Properties Trust before coming to our valuation and conclusion.