Medical Properties Trust (NYSE: MPW) has faced challenges with bankrupt tenants, leading to two major dividend cuts totaling over 70%, causing its stock price to drop nearly 80%. Despite this, the healthcare REIT currently offers a 6.2% yield. The company has been working to address these issues and may start increasing dividends in the future.

The REIT transitioned hospitals from bankrupt tenants to healthier ones, gradually increasing rental payments to new tenants. By 2026, it expects annual rental income to exceed $1 billion, with stable and rising income supported by contractual escalation clauses.

To address debt maturities, Medical Properties Trust sold assets and secured new debt funding, raising $5.5 billion over the past year. These strategic actions have positioned the company for a stronger financial outlook in 2026.

Considerations for investing in Medical Properties Trust include improvements in tenant base and balance sheet, potential dividend increases starting in 2026, and the company’s efforts to address past challenges. The Motley Fool Stock Advisor team has identified other top stocks for potential investment opportunities.

Read more at Nasdaq: After a Couple of Deep Cuts in Recent Years, This 6.2%-Yielding Dividend Is Getting Healthier and Could Start Heading Higher in 2026 and Beyond