Medical Properties Trust: A Cautionary Tale On Reaching For Yield

Summary

  • Medical Properties Trust shares fell 29% on Jan. 5, resulting in a total return of -45.6% over the past 53 weeks.
  • There were 82 free site articles written on MPW in 2022, with the majority being "buy" or "strong buy" recommendations.
  • The cottage industry of high yield dividend stock investing has attracted retirees looking for higher returns, but it may have underrepresented the risks involved.
  • This idea was discussed in more depth with members of my private investing community, Second Wind Capital . Learn More »
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On Friday, January 5, 2024, shares of Medical Properties Trust (NYSE:MPW) fell another 29%, closing at $3.55. Over the past five years, including $5.18 in cumulative dividends, if you owned MPW shares from January 1, 2019 - January 5, 2024, your total return is -45.6%. On a three year basis, January 1, 2021 - January 5, 2024, your

Second Wind Capital is a value oriented investment service with a strong recent track record of exceptional outperformance. The focus is mostly small cap value and special situation equities. From January 1, 2020 - December 31, 2023, the flagship account has compounded at 46% (pre-tax) per year. 

This article was written by

Courage & Conviction has been investing for over twenty years and has spent five years working as a buy-side analyst within a $45 billion investment-grade bond department, 3.5 years as an energy analyst, in addition to various other corporate finance roles. He has been a full time investor and author since 2020.

He leads the investing group Second Wind Capital, providing in-depth analysis on under-the-radar smallcap value ideas. He shares his real-money portfolio and does research based on fundamentals, synthesizing industry ecosystems and regularly interviewing management teams. He teaches community members to embrace volatility and exercise patience to drive alpha creation.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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