American Electric Power Co., Inc.

American Electric Power Co., Inc.

American Electric Power Co., Inc. (AEP) is a large-cap, regulated US electric utility with a market capitalisation of about $62.8 billion. It operates transmission and distribution networks and owns generation assets across multiple states, providing largely predictable, rate-regulated revenues. Investors often watch AEP for steady cash flows, infrastructure-led capital expenditure and a history of dividend payments, though dividends are not guaranteed. Key considerations include regulatory decisions at the state level, long-term capital spending plans to modernise the grid and growing activity in transmission and renewables. AEP can offer defensive characteristics relative to cyclical sectors, but it remains sensitive to interest rates, regulatory risk, weather and commodity prices for generation. This summary is for general education only and not personalised advice; investors should weigh their own goals, time horizon and risk tolerance and consult a financial adviser before making investment decisions.

Why It's Moving

American Electric Power Co., Inc.

AEP Boosts Dividend and Strikes Key Power Deals Amid Surging Demand.

American Electric Power raised its quarterly dividend to 95 cents per share, marking the 462nd consecutive payout and underscoring its commitment to shareholders amid robust grid investments. Fresh partnerships, including a major PPA with RWE for Indiana's growing energy needs, position AEP to capitalize on rising electricity demand from data centers and economic expansion.

Sentiment:
🐃Bullish
  • Dividend hiked to 95 cents quarterly, payable Dec. 10, affirming 115 years of uninterrupted payments and signaling financial stability.[1]
  • New 15-year PPA with RWE for 200 MW Prairie Creek solar project supports Indiana Michigan Power's strategy to meet surging demand.[5]
  • Siebert Williams Shank initiates coverage, aligning with Moderate Buy consensus as AEP invests $54B through 2029 in transmission upgrades.[2]

Stock Performance Snapshot

Buy

Analyst Rating

Analysts recommend buying American Electric Power's stock with a target price of $129.09, indicating potential growth.

Above Average

Financial Health

American Electric Power is performing well with strong cash flow and revenue, supporting its growth.

Average

Dividend

American Electric Power's dividend yield of 3.25% offers moderate income for investors seeking dividends. If you invested $1000 you would be paid $32.50 a year in dividends (based on the last 12 months).

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Baskets Featuring AEP

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Published: June 18, 2025

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Market Indecision

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Published: June 18, 2025

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Why You’ll Want to Watch This Stock

Grid Modernisation Drive

Large capital programmes to upgrade transmission and distribution can support long-term growth, though returns depend on regulatory outcomes.

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Stable Regulated Cashflows

Regulated rates provide predictable revenues and potential dividend support, but performance can vary with rate cases and interest-rate moves.

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Role In Energy Transition

Investment in transmission can enable more renewables on the system, but policy and market changes introduce execution and timing risks.

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Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

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