Phillips Edison & Company (PECO) DIvidends Date & History

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.

Dividend Overview

PECO is a retail REIT (real estate investment trust) that owns and operates grocery-anchored neighborhood shopping centers. REITs are required to pay out most of their taxable income to shareholders in the form of dividends, which is why companies like Phillips Edison & Company are widely followed by dividend investors. PECO pays its distribution on a monthly basis, a relatively uncommon and investor-friendly schedule compared with the quarterly payments typical of most stocks.

At a recent monthly rate of $0.1083 per share, the annualized dividend is approximately $1.30 per share, translating to a dividend yield in the low-to-mid 3% range. The company announced a small increase to $0.1150 per share in late 2026. Phillips Edison & Company is best characterized as a steady, income-oriented dividend payer with gradual growth rather than a high-yield or aggressive dividend growth stock. Its grocery-anchored portfolio provides defensive, necessity-based retail exposure that supports consistent cash flow.

Dividend History and Growth

PECO has maintained a reliable, uninterrupted dividend since its public listing, and it has increased the payout each year in a measured, sustainable fashion. The monthly rate has stepped up over time—from roughly $0.0975 per share in 2024, to $0.1025 in 2025, to $0.1083 in late 2025, and again to $0.1150 by late 2026.

These increases reflect a disciplined capital-allocation strategy tied to growth in same-center net operating income (NOI), strong occupancy, and steady rent collections. Rather than pursuing dramatic hikes, management has favored small, consistent raises that preserve balance-sheet flexibility. For dividend investors, this pattern signals a company committed to gradually compounding its income stream while keeping the payout comfortably covered.

Dividend Sustainability and Payout Ratio

For REITs, traditional earnings-per-share payout ratios are misleading because depreciation—a large non-cash expense—distorts net income. Investors instead evaluate coverage using FFO (funds from operations) and AFFO (adjusted funds from operations). On this basis, PECO’s dividend is well covered, 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 is also healthy, with the dividend consuming roughly 70% to 78% of free cash flow in recent periods—leaving a cushion for reinvestment and debt service. The company’s grocery-anchored tenant base, high occupancy, and necessity-driven retail demand contribute to stable operating cash flow. This combination of modest payout ratios, consistent cash generation, and defensive real estate supports the view that the dividend is sustainable and has room for continued gradual growth.

Dividend Compared to Industry Peers

Within the retail REIT sector, PECO’s yield of roughly 3% to 3.5% sits near the middle of the pack. The broader retail REIT average tends to run somewhat higher—often in the 4% to 4.5% range—while peers such as O (Realty Income), REG (Regency Centers), and KIM (Kimco Realty) each offer their own yield and growth profiles.

What distinguishes PECO is its monthly payment schedule and its focus on grocery-anchored, everyday-needs shopping centers, which tend to be more resilient during economic downturns than discretionary retail. While its yield is not the highest in the sector, the combination of a monthly payout, low FFO payout ratio, and consistent increases makes it competitive with larger, better-known net-lease and shopping-center REITs.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener can help identify dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities far more efficiently than manual screening. Explore the AI Screener to build watchlists tailored to your income and growth objectives.

Is This Stock Attractive for Dividend Investors?

PECO may appeal most to income-oriented and long-term investors who value a predictable, monthly cash distribution and defensive, necessity-based real estate. The monthly schedule is especially attractive to those seeking to smooth out cash flow, such as retirees or investors building a regular-income portfolio. Dividend growth investors may also find it appealing, given the company’s track record of consistent, incremental increases and its conservative FFO payout ratio.

However, the yield is modest compared with higher-yielding net-lease peers, so investors prioritizing maximum current income may find larger distributions elsewhere in the sector. As with any REIT, PECO’s dividend depends on sustained occupancy, rent growth, and access to capital, and it is sensitive to interest-rate movements and broader retail real estate conditions. Overall, the stock presents a balanced profile of steady monthly income and gradual growth, suitable for conservative, income-focused investors with a long-term 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.

Disclaimers and Limitations