Funds from operations (FFO), the measure of cash flow that we use for REITs, is expected to grow this year to $1.08 billion from $976 million. Next year, FFO is forecast to remain flat. This year, Medical Properties Trust is projected to pay out $694 million in dividends, for a payout ratio of 64%. Next year, Wall Street expects the payout ratio to inch up to 66% on an anticipated $713 million in dividends paid. The company's yearly dividend per share has been higher in each of the past 10 years, giving it a strong dividend-raising history. The stock may have been creamed this year, but the dividend is easily covered by FFO and the 10-year track record of annual dividend increases suggests that management takes the dividend very seriously. Despite the sky-high yield, Medical Properties Trust's dividend is safe. Dividend Safety Rating: A If you have a stock whose dividend safety you'd like me to analyze, leave the ticker in the comments section. Good investing, Marc |
No comments:
Post a Comment