Medical Properties Trust (NYSE: MPW) cut its dividend about two weeks after it announced second-quarter 2023 results. This was not an unexpected development -- the real estate investment trust (REIT) had a dividend yield that was as high as 16% prior to the Aug. 21 announcement. It was the right move for the company, but the way it transpired should leave a bad taste in investors' mouths.

The story behind the dividend cut isn't really all that shocking. The REIT's leverage rose as it expanded via debt-funded acquisitions. As long as everything went smoothly, its high debt level was manageable.

Continue reading

Source Fool.com