Daily Report: Medical Properties Trust (MPW)

Medical Properties Trust Inc, known by the ticker symbol MPW, is a large cap HealthCare Facilities Real Estate Investment Trust in the healthcare business sector. From its inception in Birmingham, Alabama, in 2003, the Company has grown to become one of the world's largest owners of hospitals with 431 facilities and roughly 43,000 licensed beds in nine countries and across four continents on a pro forma basis. This is my first report on MPW for my Viital stock portfolio. I last reviewed MPW nine months ago, March 17th, when I reviewed it for my Vista stock portfolio.

Medical Properties Trust Inc is a healthcare facility REIT. The company operates one segment, which owns and leases healthcare facilities. 

The vast majority of MPW's revenue is generated in the United States, followed by Germany and the United Kingdom. 

The company considers merger and acquisition investment as a component of its operational growth strategy. 

It provides financing for a variety of facilities that require funds for acquisitions, sale-leasebacks, new developments, and expansion projects.

Three key data points gauge any dividend equity or fund such as Medical Properties Trust Inc (MPW):

(1) Price (2) Dividends (3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

MPW Price

Medical's price per share was $22.36 as of yesterday's market close. One year ago its price was $20.84. Thus, MPW's share price grew about 7.3% in the past year.

If Medical's stock trades in the range of $19.00 to $26.00 this next year, its recent $22.36 share price could rise by $2.14 to reach $25.50 by December 8, 2022. My estimate is $0.07 above the median of the estimates from fourteen analysts who cover Medical Properties Trust for their brokerage firms.

MPW Dividends

Medical's most recent quarterly dividend of  $0.28 will pay out January 13th, 2022 to shareholders of record December 8th. That dividend equates to $1.12 annually and yields 5.01% per yesterday's $22.36 closing price. 

Medical Properties Trust Inc (MPW) has paid quarterly dividends increasing generally annually for the past eight years since January, 2014.

MPW Returns

Adding the $1.12 annual estimated MPW forward-looking dividend to my $2.14 price upside estimate shows a $3.26 potential gross gain, per share, to be reduced by any costs to trade MPW shares.  

At yesterday's $22.36 price per share, a little over $1000 would buy 45 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $3.26 gross gain per share results in a net gain of $3.04 X 45 shares = $136.80 for a 13.65% net gain on a $1,006.20  investment.

So it is that Medical Properties Trust Inc (MPW)  shows a possible 13.65% net gain including a 5.01% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in Medical Properties Trust Inc (MPW)   could generate $50.10 in cash dividends alone. Note that a single share of MPW stock bought at yesterday's closing price was $22.36. Therefore, Medical Properties  share price is less than half the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now could be a prime time to pickup Medical Properties Trust Inc (MPW)  shares. The estimated next-year dividend from $1k invested is 124% greater than MPW's single share price. Consider yourself alerted. It's a sign!   

All of the estimates above are speculation based on the past history of Medical Properties Trust Inc (MPW). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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