Top 4 High-Yield Dividend Stocks to Add to Your Portfolio

Thanks to this company's declining cash flow and recent dividend cut, we're reevaluating its dividend safety. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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View in browser SPONSORED "50 Years of Data's Screaming Move Your Money NOW" A former Goldman Sachs VP warns catching ONE secret market event is critical to recover from any volatile market. He has 50 years of data to prove it. More here. SAFETY NET This 9% Yield Is No Longer Safe Marc Lichtenfeld, Chief Income Strategist, The Oxford Club It's not often that Safety Net gets it wrong, especially when it comes to dividends it deems safe. Last year, we looked at Medical Properties Trust (NYSE: MPW). At the time, the company had plenty of cash flow, a low enough payout ratio and a solid history of annual dividend raises - everything Safety Net looks for in a dividend stock. Despite its then-high 9.7% yield, Safety Net gave Medical Properties Trust an "A" for dividend safety. Today, it's a different story. Medical Properties Trust, an Alabama-based real estate investment trust (REIT), is a landlord for hospitals and is the second-largest nongovernmental owner of hospitals in the world. The REIT's yield is still over 9%, despite the stock having fallen roughly 40% since December 2022. Even though the company was still generating plenty of cash flow, Medical Properties Trust slashed the dividend, which is a cardinal sin when analyzing dividend safety. The company lowered the most recent quarterly dividend to $0.15 from $0.29 as it reduced debt and dealt with lower funds from operations (FFO), the measure of cash flow we use for REITs. SPONSORED How Can YOU Target Winning Stocks With the Help of ChatGPT? World-renowned hedge fund manager Alpesh Patel reveals... For the first time ever... The test results from his own ChatGPT-enhanced strategy. He says they can be summed up in one word... SHOCKING. Watch the FREE Replay FFO isn't expected to be much lower this year, just a $7 million drop from $934 million to $927 million. While we never want to see FFO go down, Medical Properties Trust can still easily afford the expected $628 million in dividends this year. And the amount paid in dividends will be even lower than that next year, as the company paid a higher dividend in the first two quarters of this year. Management said it wants the payout ratio to be less than 60%, which is a reasonable number. So the main issues here are declining cash flow and the just-imposed dividend cut. Once a company gets comfortable reducing the dividend, it is very likely to do so again if business doesn't improve. Despite declining cash flow, Medical Properties Trust still pays a higher dividend yield than its peers, and it could easily cut its dividend again. Dividend Safety Rating: D If you have a stock whose dividend safety you'd like me to analyze, leave the ticker symbol in the comments section. You can also take a look to see if I've written about your favorite stock recently. Just click on the word "Search" at the top right part of the Wealthy Retirement homepage, type in the company name and hit "Enter." Good investing, Marc Leave a Comment RECOMMENDED LINKS Have Your Stocks Taken a Beating? See the (Secret) Signal That Separates Big Winners From Painful Losers. Watch the Full Presentation. One Potentially Explosive Stock That Alexander Green Just Discovered Has Seen Five-Year 2,000% Revenue Growth, Enjoys 70% Gross Margins and Sports a Debt-Free Balance Sheet, yet Still Trades Under $10. He's Calling It the "Next Great American Super Stock." (Click for Details.) MORE FROM WEALTHY RETIREMENT Is This the Perfect Time to Buy Bonds? How Snake Wrangling Can Help You Become a Better Investor Should You Invest in Baytex Energy? Can OneMain Holdings Sustain Its Double-Digit Yield? Facebook LinkedIn Email Share Push Alert SPONSORED Stock Under $3: Last Value Play on Earth? Last year it was more profitable than Disney, Square or even Tesla... But it's just under $3 per share. It could be $20 a share and STILL be a bargain. 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