Income investors primarily look for three things in any stock they buy. First, they obviously want to generate sufficient income to meet their needs. Second, they want that income to be dependable. Third, they don't want a declining share price to outweigh the income received from dividends.

Medical Properties Trust (MPW -7.71%) (MPT) and Verizon Communications (VZ 0.83%) stand out as two stocks that many income investors are likely to have on their radar screens. Which of these two ultra-high-yield dividend stocks is the better choice right now? Here's how MPT and Verizon stack up against each other.

Dividends

MPT easily wins over Verizon on one important front. The healthcare real estate investment trust (REIT) currently offers a dividend yield of 14.3%. That's more than double Verizon's dividend yield of 6.6%.

However, Verizon has an advantage based on dividend track records. The telecom giant has increased its dividend for 16 consecutive years. MPT has increased its dividend for eight consecutive years.

What about the dependability of these companies' dividends? Verizon seems to come out on top in this category as well.

Some investors could be worried that MPT might have to cut its dividend. The REIT leases properties to hospital operators, many of which have faced financial challenges over the last few years. One of MPT's top tenants, Prospect Medical, hasn't been able to fully pay its rent so far this year.

The good news is that the overall financial outlook for hospital operators is improving. MPT expects to fully recover all of the money that Prospect owes over time. Assuming the company can deliver on its guidance range for 2023, it should be able to maintain dividends at current levels.

Verizon, meanwhile, appears to be in a solid position to keep its streak of dividend increases going. Its dividend payout ratio currently stands at a respectable 51%.

Chances of major stock declines

Both of these stocks have fallen over the past 12 months. However, MPT's plunge is much worse than Verizon's. What are the chances that further declines could wipe out any dividend income generated over the next few years?

Short-sellers are betting pretty heavily that MPT stock will continue to fall. The short percentage of float for the REIT stood at nearly 29% as of March 15. By comparison, only around 1% of Verizon's float was sold short.

My view, though, is that the worst is probably over for MPT. The company recently announced the sale of 11 of its Australian hospitals. This move enables MPT to reduce its debt. It's possible that more good news could even spark a short squeeze.

I think that Verizon's fortunes should improve as well. The telecom giant's growth prospects are better than they might seem at first glance. 

To be sure, it's possible that either of these stocks could decline enough to more than offset income generated by dividends. However, I expect that both stocks will hold up well over the long term.

The better pick

Returning to our original question, which of these two ultra-high-yield dividend stocks is the better pick? My answer is... it depends on your investing style.

If you're an aggressive investor willing to take on considerable risk, MPT should be attractive. Its yield is sky-high. The stock is dirt cheap. Yes, the stock is risky. But I think that MPT's underwriting process and diversified portfolio also make its risk level lower than some believe it is.

If you're more risk-averse, my view is that Verizon will be the better choice for you. Although the company isn't risk-free (for example, it has a large debt load), Verizon has been a reliable source of income for a long time. The stock is also valued attractively at current levels.

Income investors look for the same things in buying a stock. However, how much weight they give to each factor will vary from person to person. Because of this, the better pick between MPT and Verizon will also be different for different investors.