Assessing the Sustainability of Phillips Edison & Co Inc's Upcoming Dividend
Phillips Edison & Co Inc (PECO, Financial) recently announced a dividend of $0.1 per share, payable on 2024-05-01, with the ex-dividend date set for 2024-04-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Phillips Edison & Co Inc's dividend performance and assess its sustainability.
What Does Phillips Edison & Co Inc Do?
Phillips Edison & Co Inc is a real estate investment trust (REIT) that specializes in owning and managing grocery-anchored neighborhood and community shopping centers. The company boasts an integrated in-house operating platform, leveraging local market expertise to enhance property value and deliver a consistent, quality shopping experience for consumers.
A Glimpse at Phillips Edison & Co Inc's Dividend History
Phillips Edison & Co Inc has maintained a consistent dividend payment record since 2018, distributing dividends on a monthly basis. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Phillips Edison & Co Inc's Dividend Yield and Growth
As of today, Phillips Edison & Co Inc's trailing dividend yield stands at 3.26%, with a forward dividend yield projected at 3.33%. This indicates an expected increase in dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was a robust 49.90%, which moderates to 26.10% over a five-year horizon. Consequently, the 5-year yield on cost for Phillips Edison & Co Inc stock is approximately 10.39% as of today.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. Phillips Edison & Co Inc's dividend payout ratio is 2.20 as of 2023-12-31, which may raise concerns about the dividend's sustainability. However, the company's profitability rank of 6 out of 10 suggests fair profitability, with net profit reported in 7 out of the past 10 years.
Growth Metrics: The Future Outlook
Phillips Edison & Co Inc's growth rank of 6 indicates a fair growth outlook. Its revenue per share and 3-year revenue growth rate of 0.80% per year, though underperforming 63.8% of global competitors, still reflects a solid revenue model.
Next Steps
Considering Phillips Edison & Co Inc's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors should weigh these factors carefully. While the dividend history is consistent and the yield on cost is attractive, the sustainability of such dividends should be monitored, particularly in light of the payout ratio and revenue growth. GuruFocus Premium users can further explore high-dividend yield opportunities using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
