This Beleaguered Ultra-High-Yield Dividend Stock Might Soon Get Some Much-Needed Relief

Medical Properties Trust (NYSE: MPW) has fallen on hard times over the past few years. Shares of the hospital-focused real estate investment trust (REIT) have lost more than 80% of their value from the peak in early 2022. That decline has pushed its dividend yield into the double digits. A big factor has been the financial issues of its top two tenants, who haven't been able to make their full rental payments.

The healthcare REIT might be about to get some relief from one of its tenants. Top tenant Steward Health Care agreed to sell its managed care business to an affiliate of (NYSE: UNH). Here's a look at the proposed transaction and what else needs to happen to put the REIT on the road to recovery.

According to several media reports, Steward Health Care has agreed to sell its managed care business, Stewardship Health, to Collaborative Care Holdings, a subsidiary of UnitedHealth's Optum unit. That business employs primary care physicians and other clinicians in nine states, including Massachusetts. The sale, for an undisclosed sum, would enable the company to shore up its financial position so that it can repay some of what it owes Medical Properties Trust and other creditors. The reports also indicated that the company wants to sell some of its hospital operations in Massachusetts.

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Source Fool.com