2 Dividend-Paying Stocks Income Investors Should Avoid
The stock market is home to many excellent dividend stocks. It is also home to many companies that pay dividends, but aren't necessarily attractive income stocks. income seekers want to invest in the former, while the latter won't -- or shouldn't -- appeal to them, at least not for this narrow purpose.
It might not always be easy to recognize which of these two categories a corporation that pays dividends falls into, but let's consider two stocks that dish out regular payouts but don't look like top dividend stocks: Medical Properties Trust (NYSE: MPW) and Walgreens Boots Alliance (NASDAQ: WBA).
Medical Properties Trust (MPT), a real estate investment Trust (REIT) focused on the healthcare sector, is an excellent example of why dividend investors shouldn't just chase high yields. The company's forward yield of 6.91% is high by any market standard -- it is substantially above the S 500's (SNPINDEX: ^GSPC) average of 1.32%.
Source Fool.com
