After a Couple of Deep Cuts in Recent Years, This 6.2%-Yielding Dividend Is Getting Healthier and Could Start Heading Higher in 2026 and Beyond

Core Insights - Medical Properties Trust (MPW) has faced significant challenges in recent years, including bankruptcies of major tenants, which severely impacted rental income and refinancing efforts amid rising interest rates [1][2] - The REIT has cut its dividend twice, totaling over 70%, leading to a stock price decline of nearly 80%, yet it currently offers a yield of 6.2% [2] - Efforts to improve tenant quality and financial stability may enable the company to increase dividends in the coming years, assuming no further setbacks occur [3] Tenant Base and Financial Strategy - At the end of 2022, Steward Health Care and Prospect Medical Holdings were the largest tenants, accounting for 26.1% and 11.5% of revenue, respectively, both of which faced financial difficulties leading to bankruptcy [5] - The company has replaced these troubled tenants with healthier ones, transitioning 17 facilities to new tenants and securing new lease agreements for six hospitals in California [6][7] - The new lease agreements include gradual rental payment escalations, with full stabilization expected by the end of 2026, potentially generating over $1 billion in annual rental income [8]