If you invested $1,000 in a medical property Trust 5 years ago, this is how much you would earn in dividends today

news7f10/28/2022

0 2 minutes read

If you invested $1,000 in a medical property Trust 5 years ago, this is how much you would earn in dividends today

If you are purely an income investor, one of the factors you should always monitor is how much your dividends are growing over time on the stocks you hold. Even if the current stock price is lower than your original purchase price, as long as you have no intention of selling and the dividend payout continues unabated, your investment purposes are still relevant and you can satisfied to continue holding the stock.

It’s helpful to look back over a longer time frame to see how much you’ve earned in dividends and compare your current yield with the return you received when you bought the stock. Here’s a look at a real estate investment fund (REIT) over the past five years and what it produces today compared to 2017.

Medical Properties Trust Inc. (NYSE: MPW) is a healthcare REIT based in Birmingham, Alabama that owns and operates 447 properties in 10 countries in the US, Europe and Australia.

According to its website, the Medical Properties Trust invests in “acute care hospitals, rehabilitation, long-term acute care hospitals, and other real estate properties that typically require physician-designated admissions.” “.

Medical Properties Trust stock pays a quarterly dividend to shareholders of $0.29. Five years ago, its stock generated only $0.24 per quarter, so the dividend increase during that time was 20.8%.

If you had invested $1,000 in the Medical Properties Trust 5 years ago, you would have purchased 76 shares for approximately $13.15. Over a 5-year period, you will receive $5.33 in dividends, so for 76 shares, you will receive a total of $404.08 during that time.

The dividend yield you will receive in 2017 will be 7.3%. But with the Medical Properties Trust increasing its annual dividend from $0.96 to $1.16 in March, the yield on those dividends will now be raised to 8.8%. That’s why it pays to buy dividend stocks and hold them for the long haul.

But what if instead of receiving dividends, you reinvested them? In that case, you would now have about 102 shares of stock, paying $118.32 per year in dividends. That would be 11.8% return on your initial investment.

Shares of the Medical Properties Trust are down about $2.50 per share over the past five years. At the beginning of 2022, it was close to $23 but is down more than 50% this year. But with a stock rollover, you would still gain about 6% in that time. If you didn’t reinvest the stock, your total return would now be about 3.5%. But again, as an income investor, the concern is always about the dividends and the return you receive, so with a Medical Properties Trust you will still be profitable.

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