Looking for Reliable Dividend Stocks in the New Bull Market? Avoid This Stock.
With the new bull market in full swing and making waves thanks to frothy bets on artificial intelligence stocks, dividend investors have the same objective as always: Finding safe income streams. But the most rock-solid dividend stocks tend to be expensive for that very reason. It's not much of a risk to bet on entrenched incumbents, so their dividend yields are typically on the low side.
On the other hand, betting on beaten-down players making a turnaround offers the potential for outsize returns in the future, if perhaps in exchange for some anxiety between now and then. That does not make every struggling dividend-paying business a smart investment, however. Here's an example of one very tempting stock to avoid buying right now, whether it's a bull market or not.
There's a smorgasbord of evidence suggesting that Medical Properties Trust (NYSE: MPW) stock will not be able to deliver a reliable stream of cash to its shareholders despite being a real estate investment trust (REIT) in the relatively slow-moving healthcare sector.
Source Fool.com
