1 Dividend Stock Yielding 6% to Buy and Hold

Core Viewpoint - Medical Properties Trust (MPT) has faced significant challenges over the past three years but is now on a path to recovery, with a current stock yield of 6% appearing relatively safe for long-term investors [1]. Group 1: Financial Challenges and Recovery - MPT's financial results and stock price were negatively impacted by the bankruptcy of two major tenants, leading to a drop in rental income and funds from operations (FFO) [3][4]. - The company was forced to cut its dividend as a necessary measure to stabilize its finances and improve its business operations [3][4]. - MPT has implemented a comeback plan by selling properties to raise capital and securing new tenants for previously occupied facilities [4][5]. Group 2: Financial Strengthening - Since the beginning of 2023, MPT has paid down $2.2 billion in debt, addressing all debt maturities through 2026 and refinancing existing obligations [5]. - The company has diversified its operations by bringing in new tenants, reducing its vulnerability to financial issues stemming from a few tenants [6]. Group 3: Future Outlook - MPT's new tenants will gradually increase their rental payments, with full revenue expected by the fourth quarter of next year, indicating a slow but steady improvement in revenue and FFO [7]. - The stock has appreciated by 45% year to date, driven by its undervaluation, the appeal of dividend-paying stocks in a challenging economic environment, and the consistent demand for healthcare-related real estate [8][9]. - Despite a significant 70% decline in stock value over the past three years, MPT's recovery efforts and improved outlook make it a potential consideration for income-seeking investors [10][11].