GET DAILY SIGNALSPhillips Edison & Company (PECO) Delivers Reliable Monthly Dividends for Income Seekers
Key Takeaways
- Phillips Edison & Company (PECO) pays a monthly dividend of roughly $0.1083 per share (recently raised to $0.1150), with an annualized payout near $1.30 per share.
- The stock carries a dividend yield around 3.0% to 3.5%, placing it in the middle of the retail real estate investment trust (REIT) peer group.
- As a REIT, PECO distributes the large majority of its taxable income, and its payout is well covered by funds from operations (FFO), a key earnings measure for real estate companies.
- The company has raised its dividend consistently in recent years, supporting a modest but steady dividend growth profile.
- The monthly cadence makes PECO appealing to income-focused investors seeking regular, predictable cash distributions.
Understanding PECO's Dividend Structure
PECO operates as a retail REIT focused on grocery-anchored neighborhood shopping centers. Because REITs must distribute most of their taxable income to shareholders, these companies often attract attention from dividend investors. What sets PECO apart is its monthly payment schedule, which differs from the quarterly cadence common among most equities. At the recent monthly rate of $0.1083 per share, the annualized dividend reaches about $1.30, supporting a yield in the low-to-mid 3% range. The company recently lifted the monthly amount to $0.1150. In my view, PECO represents a steady, income-oriented payer with measured growth rather than a high-yield or aggressive growth name. Its grocery-anchored assets provide defensive exposure that helps support consistent cash flow.
Reviewing the Dividend's History and Growth Path
PECO has delivered an uninterrupted dividend since going public and has raised the payout each year in a measured way. The monthly rate has advanced gradually—from around $0.0975 in 2024, to $0.1025 in 2025, to $0.1083 later in 2025, and then to $0.1150 by late 2026. These steps reflect disciplined capital allocation supported by growth in same-center net operating income, solid occupancy levels, and reliable rent collections. Management has preferred modest, repeatable increases that maintain balance-sheet flexibility. From what I see, this approach signals a commitment to gradually building the income stream while keeping coverage comfortable.
Evaluating Dividend Coverage and Sustainability
Traditional earnings payout ratios can mislead with REITs because of large non-cash depreciation charges. Investors therefore focus on funds from operations (FFO) and adjusted funds from operations (AFFO). On that basis, PECO’s dividend shows solid coverage, with a payout ratio generally in the low-to-mid 40% range of FFO—a conservative level for a retail REIT. Free cash flow coverage also looks healthy, with the dividend using roughly 70% to 78% of free cash flow in recent periods and leaving room for reinvestment and debt service. The grocery-anchored tenant mix, high occupancy, and necessity-driven demand help generate stable operating cash flow. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. This combination of modest ratios, steady cash generation, and defensive real estate supports the conclusion that the dividend remains sustainable with room for continued gradual growth.
Placing PECO Among Retail REIT Peers
Within the retail REIT group, PECO’s yield of roughly 3% to 3.5% sits near the middle of the range. The broader sector average often runs higher, frequently between 4% and 4.5%. Peers such as O (Realty Income), REG (Regency Centers), and KIM (Kimco Realty) each bring their own yield and growth characteristics. What distinguishes PECO is the monthly payment schedule along with its emphasis on grocery-anchored centers that tend to hold up better in downturns than discretionary retail. While the yield is not the highest in the sector, the monthly cadence, low FFO payout ratio, and consistent increases make it competitive with larger net-lease and shopping-center REITs.
Using AI Tools to Refine Dividend Research
I find Tickeron’s AI Screener helpful when screening for dividend ideas. The tool lets me filter stocks by industry, fundamentals, technical patterns, and AI-driven signals, which speeds up the process of comparing names like PECO against peers. It has become a regular part of how I build and review income-focused watchlists without replacing my own analysis.
Is PECO Suitable for Dividend Investors?
PECO may appeal most to income-oriented, long-term investors who value a predictable monthly cash stream and defensive, necessity-based real estate. The monthly schedule can help smooth cash flow for retirees or those building regular-income portfolios. Dividend growth investors may also appreciate the track record of incremental increases and the conservative FFO payout ratio. That said, the yield remains modest relative to higher-yielding net-lease peers, so investors seeking maximum current income might look elsewhere in the sector. As with any REIT, the dividend depends on sustained occupancy, rent growth, and access to capital, and it can be sensitive to interest-rate shifts and retail real estate conditions. Overall, PECO offers a balanced profile of steady monthly income and gradual growth that fits conservative, income-focused investors with a longer horizon.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PECO sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for PECO moved below the 200-day moving average on October 13, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 31 of 66 cases where PECO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 47%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PECO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 46%.
PECO broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PECO's RSI Oscillator exited the oversold zone, 9 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 41%.
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on PECO as a result. In 57 of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 60%.
The Moving Average Convergence Divergence (MACD) for PECO just turned positive on September 28, 2026. Looking at past instances where PECO's MACD turned positive, the stock continued to rise in 31 of 58 cases over the following month. The odds of a continued upward trend are 53%.
PECO moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.93% 3-day Advance, the price is estimated to grow further. Considering data from situations where PECO advanced for three days, in 152 of 294 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.
The Aroon Indicator entered an Uptrend today. In 119 of 249 cases where PECO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 48%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 24 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating steady price growth. PECO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.079) is normal, around the industry mean (2.718). P/E Ratio (33.357) is within average values for comparable stocks, (34.982). Projected Growth (PEG Ratio) (2.430) is also within normal values, averaging (12.808). Dividend Yield (0.012) settles around the average of (365.798) among similar stocks. P/S Ratio (6.998) is also within normal values, averaging (6.739).
The Tickeron SMR rating for this company is 81 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 87 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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