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Stock Ideas Investors Daily Edge This Super-Safe Hospital Stock Pays a 9% Dividend
Stock Ideas Investors Daily Edge This Super-Safe Hospital Stock Pays a 9% Dividend 
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| The news was good on the earnings front and foreign markets were surging on the heels of the US gains. MSFT's results and guidance were pleasing; CAT talked of a 'very strong' back order situation, though that was outside of the US... | |
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| This Super-Safe Hospital Stock Pays a 9% Dividend |
| Wednesday, 16 April 2008 | ||||||||
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The best recession-proof stock to own today is a medical REIT. I first recommended Medicinal Properties Trust (MPW) three years ago, around $9 a share. Since then it has paid out 10 dividends, the last four of which where 27 cents apiece, or $1.08 annually. That’s 9% of the current stock price. Medicinal Properties Trust (MPW) With a consistent payout like that you might wonder why the stock is down. I’ll tell you. MPW has recently sold 11 million shares (20% dilution) in order to buy seven new health care properties from HCP Inc. (NYSE:HCP) for $138 million, including two hospitals in Texas.  That action is now completed and subsequently priced in. The company has a price to earnings of 9, profit margins of 42%, a quarterly revenue growth of 72%, and a long history of paying solid dividends. Recession or not, people get sick and need to go to a doctor. More and more of those doctors are paying rent to MPW. Christian DeHaemer Editor, Crisis Trader
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