I Can't Seem to Get Enough of This High-Yielding REIT
I love to invest in real estate investment trusts (REITs). These entities generate lots of passive income and tend to deliver attractive total returns (dividend income plus capital gains). I hold several REITs in my portfolio.
My largest REIT holding by far is Medical Properties Trust (NYSE: MPW). I started buying shares of the healthcare REIT in 2007 and have steadily added to my position over the years. I purchased additional shares earlier this year and recently added even more. Here's why I can't seem to get enough of this high-yielding REIT.
Shares of Medical Properties Trust have been under a lot of pressure this year. They've fallen more than 35% from their peak, weighed down by the interest rate-inspired sell-off in the REIT sector. Shares of REITs typically decline when the Federal Reserve raises interest rates to compensate investors for their higher risk profile compared to other income-producing vehicles, such as bonds and bank CDs. Medical Properties' dividend yield has risen from around 5% to more than 7% this year.
Source Fool.com
