Understanding PECO's Dividend Payout and Growth Prospects
Phillips Edison & Co Inc(PECO, Financial) recently announced a dividend of $0.1 per share, payable on 2024-02-01, with the ex-dividend date set for 2024-01-12. 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. It invests primarily in well-occupied, grocery-anchored neighborhood and community shopping centers. It holds an integrated in-house operating platform built on market-leading expertise designed to optimize property value and consistently deliver a great shopping experience.
A Glimpse at Phillips Edison & Co Inc's Dividend History
Phillips Edison & Co Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Phillips Edison & Co Inc's Dividend Yield and Growth
As of today, Phillips Edison & Co Inc currently has a 12-month trailing dividend yield of 3.15% and a 12-month forward dividend yield of 3.24%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Phillips Edison & Co Inc's annual dividend growth rate was 87.10%. Based on Phillips Edison & Co Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Phillips Edison & Co Inc stock as of today is approximately 3.15%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Phillips Edison & Co Inc's dividend payout ratio is 2.29, which may suggest that the company's dividend may not be sustainable.
Phillips Edison & Co Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Phillips Edison & Co Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 6 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Phillips Edison & Co Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Phillips Edison & Co Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Phillips Edison & Co Inc's revenue has increased by approximately -3.60% per year on average, a rate that underperforms approximately 71.29% of global competitors.
Concluding Thoughts on Phillips Edison & Co Inc's Dividend Profile
In conclusion, while Phillips Edison & Co Inc's dividend growth rate and yield on cost present an attractive picture for income-focused investors, the sustainability of its dividends warrants a closer look. The payout ratio, although low, alongside a fair profitability and growth rank, suggests the need for cautious optimism. Investors should monitor the company's financial health and market position to gauge the long-term viability of its dividend program. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment opportunities.
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.
