Daily Stock Pick: Medical Properties (MPW)

A portfolio of stocks I started and named Volio Folio, September 3, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

I'm reviewing today the third of five healthcare stocks striving to be picked to join the Volio folio collection. This would be the fifth pick for Volio!

This healthcare collection includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; healthcare facilities; medical care; medical devices; medical distribution; medical supplies.

My subject today is another mid cap healthcare facilities - REIT named Medical Properties Trust Inc. Their trading ticker symbol is MPW. I last reported about MPW on January 10, 2019.

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

The Company is based in Birmingham, AL.

I use three key data points to gauge dividend-paying equities or funds like Medical Properties Trust Inc. (MPW):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

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

MPW Price

Medical Property's price per share closed at $19.31 yesterday. A year ago its price was $14.56. In the past year, its price increased by $4.75 or 32.6%.

Assuming MPW's stock trades in the range of $16.00 to $20.00 this next year, Medical Property's recent $19.31 price could rise by $1.19 and get to $20.50 by early October 2020, if upward momentum holds.

MPW Dividends

Medical Property's latest declared quarterly dividend was $0.26 payable October 10th.

That $0.26 Q dividend equates to $1.04 annually and yields 5.39% based on yesterday's $19.31 closing price.

MPW Gains?

Adding the $1.04 annual estimated dividend to my $1.19 estimate of Medical Property's price upside shows a $2.23 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little over $1,000.00 today into Medical Property Trust at its recent $19.31 price, we'd buy 52 shares of Medical Properties Trust Inc. (MPW).

A $10 broker fee paid half at purchase and half at sale will cost us about $0.19 per share.

Subtract that $0.19 brokerage cost from the estimated $2.23 gross estimated gain leaves a net gain of $2.04 X 52 shares = $106.08 or a 10.6% net gain on a $1,004.12 investment.

Therefore, Medical Properties Trust Inc., whose trading ticker symbol is MPW now shows a possible net gain of 10.6% including a 5.39% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Medical Properties Trust Inc.(MPW) is worth your time and money.

Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts Catch Your Underdog Daily ...

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