MTBCP Stock Dividend: A Closer Look at CareCloud’s High-Yield Preferred Shares

When income-focused investors search for stable dividend-paying securities, they often look beyond common stocks and consider preferred shares. One of the higher-yielding options on the NASDAQ is MTBCP, the Series A Cumulative Redeemable Perpetual Preferred Stock issued by CareCloud, Inc. (NASDAQ: MTBCP).

CareCloud is a healthcare technology and revenue cycle management company that supports physician practices with software and services. But for dividend investors, the company’s preferred stock is often more interesting than its common shares because of the high fixed dividend rate and priority payouts.

This article explains how the MTBCP dividend works, what makes it attractive, and the risks you should keep in mind.

What is MTBCP?

MTBCP is a preferred stock, which means it has characteristics similar to both bonds and stocks:

Fixed dividend payments

Priority over common shares for dividends and liquidation

Cumulative feature, which requires the company to pay any missed dividends later

Redemption option, which allows CareCloud to buy back the shares

The combination of these features makes MTBCP an appealing choice for investors who want predictable income.

Dividend Structure and Yield

The MTBCP preferred shares pay a fixed annual dividend of $2.75 per share. This is typically distributed quarterly, with investors receiving $0.6875 per share every quarter.

If you own 100 shares of MTBCP, you would expect to receive $68.75 each quarter, or $275 annually.

The dividend yield depends on the price you pay for the shares:

If the shares trade at $25 (par value), the yield is 11%.

If the shares trade at a discount (e.g., $20), the yield increases to about 13.75%.

This is significantly higher than most common stock dividends or U.S. Treasury yields, which is why MTBCP attracts many income-oriented investors.

Why Investors Like MTBCP

Here are some reasons MTBCP stands out in the market:

✅ Stable Cash Flow

Fixed dividends create predictable income, useful for retirees or anyone needing regular payments.

✅ Cumulative Dividends

If CareCloud ever skips a dividend payment due to cash flow issues, it must repay those missed dividends in the future before it pays any common stock dividends.

✅ Priority Payment

Preferred shareholders are paid before common shareholders during dividend distributions and in the event of liquidation.

✅ Potential Price Discounts

Sometimes the shares trade below their $25 par value, creating opportunities to lock in a higher yield and potential price appreciation if the company redeems the shares later.

Key Risks to Consider

No investment is risk-free. Here are the main risks of owning MTBCP:

⚠️ Interest Rate Sensitivity

When market interest rates rise, high-yield preferred stocks often fall in price because investors can get better yields elsewhere.

⚠️ Credit and Business Risk

CareCloud is a smaller healthcare IT company. If it faces financial difficulties, dividend payments could be suspended temporarily (although cumulative dividends eventually must be paid).

⚠️ Call/Redemption Risk

MTBCP is redeemable, meaning CareCloud can buy back the shares at $25. If you buy shares above $25 and the company redeems them, you could lose principal.

⚠️ Liquidity

Preferred shares sometimes trade with lower volume than common stocks, which can make it harder to sell quickly without affecting the price.

Dividend Payment History

CareCloud has established a record of consistently paying the MTBCP dividend since issuance. Even during challenging market conditions, the company continued distributions, building credibility with income-focused investors. However, it’s still critical to monitor quarterly earnings reports to watch for any signs of trouble.

Should You Buy MTBCP?

MTBCP could be a good fit if you:

✅ Want high, regular income

✅ Can tolerate moderate credit risk

✅ Understand the potential for price volatility if interest rates rise

✅ Are comfortable with the possibility of redemption

For many income-focused portfolios, MTBCP is an appealing way to boost yield, but it should never be your only holding. Diversification remains essential to manage risk.

Final Thoughts

MTBCP preferred shares deliver a high fixed dividend yield and the security of cumulative payments. While not without risk, they can be a valuable addition for investors needing predictable income and willing to accept some credit and interest rate exposure.

Before investing, be sure to:

Read CareCloud’s latest financial statements

Consider your risk tolerance

Speak with a financial advisor to see if MTBCP fits your goals