Monthly Dividends That Don't Suck

This REIT Provides Solid Income And Steady Capital Appreciation

September 03, 2025

In partnership with

As a rule of thumb, I avoid reviewing monthly dividend stocks and funds. Why? Because many of these investments are gimmicks whose biggest selling point is their monthly distribution.

Sure, there are some exceptions to this, like Realty Income Corporation, but many monthly dividend stocks are poor long-term investments.

Case in point…

Picking a monthly dividend stock at random, I selected AGNC Investment Corp.. This business has paid a flat. $0.12/share monthly dividend since 2020. And, AGNC delivered a 10-year average annual total return of just 5.78%.

Oxford Square Capital Corp. is another monthly dividend stock, and one that’s sometimes touted on Seeking Alpha. This company has delivered a 10-year average annual total return of just 3.42%. Not good, especially when there are savings accounts that pay higher annual interest.

Which leads into today’s stock, a business that’s been around since 1991, but only went public in 2021.

Phillips Edison & Company, Inc. ($PECO) is a real estate investment trust that owns grocery-anchored shopping centers. They develop and own properties that have a supermarket, like Jewel-Osco or Publix, as the main tenant as well as ancillary tenants like tax offices, spas, and Thai restaurants that are adjacent to the main grocery store.

The company rents to a number of recognizable supermarket chains, including: Kroger, Publix, Albertsons, and Ahold Delhaize.

Phillips Edison & Company, Inc. has raised its dividend every year since going public, and the company has seen its share price increase since the IPO. Additionally, this is a relatively inexpensive stock with a decently high starting yield and solid dividend growth.

But more on that in a moment…

Phillips Edison & Company, Inc. ($PECO)

Phillips Edison & Company, Inc. manages 321 shopping centers across 31 states. The company specializes in owning grocery-anchored properties which are traditionally more resilient to economic downturns than other forms of real estate.

Recession or economic boom, people still need to buy groceries.

While not an ultra-cheap stock, Phillips Edison currently trades at a price to funds from operations ratio of 13.63. The company also pays a 3.69% starting dividend yield while growing its dividend at a compound annual rate of 4.75% since going public.

Interestingly, Phillips Edison’s dividend growth has actually accelerated in recent years, with the company announcing a 5.7% dividend increase earlier this week.

As a company that’s only been public for a few years, Phillips Edison doesn’t have a super long share price history. However, the stock has delivered a 4-year average annual total return of 9.29%. Not as good as the S&P 500, but better than many real estate investment trusts.

  • Forward FFO ratio of 13.63

  • 3.69% starting dividend yield

  • 4-year dividend CAGR of 4.75%

  • Payout ratio of 47.95%

  • 4-year average annual total return of 9.29%

It’s impossible to write about Phillips Edison & Company, Inc. without mentioning another monthly dividend stock that also operates in the real estate space…

Realty Income Corporation is one of the best-known monthly dividend stocks.

Currently, Realty Income and Phillips Edison trade for similar valuations. However, Realty Income has a much higher starting dividend yield of 5.59%. That said, Realty Income’s dividend growth rate is lower, with a 5-year compound annual dividend growth rate of 3.56%. And, Realty Income has a lower 10-year average annual total return of 8.13%.

So while Realty Income is better-known and higher yield, Phillips Edison currently offers faster dividend growth as well as a slightly better total return.

I like Phillips Edison & Company, Inc. and would buy shares. It’s a relatively inexpensive company that owns quality assets. And the company pays monthly dividends that have consistently increased over time.

If you’re looking for a REIT that pays monthly dividends and isn’t Realty Income, this might be a good alternative.

200+ AI Side Hustles to Start Right Now

AI isn't just changing business—it's creating entirely new income opportunities. The Hustle's guide features 200+ ways to make money with AI, from beginner-friendly gigs to advanced ventures. Each comes with realistic income projections and resource requirements. Join 1.5M professionals getting daily insights on emerging tech and business opportunities.

Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.