Fredrik Arnold Blog | Daily Stock Analysis: Medical Properties (MPW) | TalkMarkets
Financial Analyst
Contributor's Links: Dividend Dogcatcher
Fredrik Arnold is my pen name. A fascination with capital preservation, fixed fractional trading, and trading systems keeps me blogging for dividenddogcatcher.com, talkmarkets.com, and seekingalpha.com. Most of my ...more

Daily Stock Analysis: Medical Properties (MPW)

Date: Friday, April 30, 2021 12:32 AM EDT

Medical Properties Trust Inc has the ticker symbol MPW and is a large cap member of the healthcare sector as a healthcare facilities real estate investment trust. This is my second report on Medical Properties Trust Inc for this Vista folio. I previously discussed MPW on March 17, about a month and a half ago.

 

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. 

 

From its inception in Birmingham, Alabama, 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. 

 

MPW's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.

 

Three key data points gauge dividend equities or funds like Medical Properties Trust Inc (MPW):

 

(1) Price

(2) Dividends

(3) Returns

 

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

 

MPW Price

 

MPW's price per share closed at $22.02 yesterday. One year ago its price was $17.14.  Thus, price per share has grown over 28.5% since  recovering from last-year's Covid market slump. 

 

Should Medical Properties Trust Inc stock trade in the range of $15.00 to $25.00 this year, its recent $22.02 price might rise by $1.98 to reach $24.00 by April 30, 2022. My estimate is $0.15 lower than the median of thirteen estimates from analysts tracking MPW.

 

MPW Dividends

 

MPW's most recent quarterly dividend of $0.28 was paid April 8th, and equates to $1.12 annually which yields 5.09% at yesterday's $22.02 closing price. MPW has paid annually increasing quarterly dividends for 8 years. 

 

MPW Returns

 

Adding the $1.12 annual Medical Properties forward looking dividend to my $1.98 price upside estimate shows a $3.10 potential gross gain, per share, to be reduced by any costs to trade the shares.  

 

If we put little under $1,000.00 today in Medical Properties Trust Inc at $22.02 per share, we'd buy 45 shares.

 

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

 

Subtract that maybe $0.22 brokerage cost from my estimated $3.10 gross gain per share results in a net gain of $2.88 X 45 shares = $129.60 for a 12.96% net gain on a $990.90 investment.

 

Thus, Medical Properties Trust Inc shows a possible 12.96% net gain including a 5.09% forward looking dividend yield. 

 

Over the next year at this time a $1000 investment in MPW could generate $50.90 in cash dividends. And a single share bought at yesterday's closing price was $22.02! So, if MPW is your kind of healthcare real  estate investment, the single share price is less than half the expected annual dividend income from $1,000 invested. This suggests now may be a good time to add Medical Properties Trust Inc (MPW) to your holdings.  

 

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 worth.

Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.