Better Beaten-Down Dividend Stock to Buy: Innovative Industrial Properties or Medical Properties Trust?
Real estate investment trusts (REIT) are a favorite target of income-seeking investors, since the law requires them to distribute most of their earnings as dividends to maintain their tax-advantaged status. However, even REITs face issues that put their dividend programs in danger, sometimes leading to decreased payouts.That brings us to Innovative Industrial Properties (NYSE: IIPR) and Medical Properties Trust (NYSE: MPW), two REITs that have encountered headwinds and significantly lagged behind the market during the past three years -- the latter has even resorted to cutting its dividend. If these companies solve their problems, they could deliver outsized returns and growing dividends to investors for a long time. But which is the better buy?Innovative Industrial Properties focuses on the medical cannabis industry. Its business model is simple: It buys real estate assets from marijuana growers and lends them back these properties.Continue reading
Real estate investment trusts (REIT) are a favorite target of income-seeking investors, since the law requires them to distribute most of their earnings as dividends to maintain their tax-advantaged status. However, even REITs face issues that put their dividend programs in danger, sometimes leading to decreased payouts.
That brings us to Innovative Industrial Properties (NYSE: IIPR) and Medical Properties Trust (NYSE: MPW), two REITs that have encountered headwinds and significantly lagged behind the market during the past three years -- the latter has even resorted to cutting its dividend. If these companies solve their problems, they could deliver outsized returns and growing dividends to investors for a long time. But which is the better buy?
Innovative Industrial Properties focuses on the medical cannabis industry. Its business model is simple: It buys real estate assets from marijuana growers and lends them back these properties.
