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American Electric Power Company Inc

Exchange: NASDAQSector: UtilitiesIndustry: Utilities - Regulated Electric

American Electric Power is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with approximately 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio.

Did you know?

Net income compounded at 10.9% annually over 6 years.

Current Price

$132.68

+0.77%

GoodMoat Value

$116.34

12.3% overvalued
Profile
Valuation (TTM)
Market Cap$71.02B
P/E19.84
EV$67.98B
P/B
Shares Out535.27M
P/Sales3.25
Revenue$21.88B
EV/EBITDA7.74

American Electric Power Company Inc (AEP) Dividends

GoodMoat Analysis

Based on data as of March 26, 2026

The dividend profile for American Electric Power (AEP) is stable but presents a mixed picture for a value investor. The current yield is slightly below the sector average, and the payout is supported by earnings but not by free cash flow, which is negative. Dividend growth is modest, supported by a regulated business model.

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American Electric Power offers a dividend yield of 2.92%, which is slightly below the typical sector average for regulated utilities, often in the 3-4% range. The dividend's sustainability based on earnings appears reasonable, with a payout ratio of approximately 59% based on the provided EPS of $6.66 and the current annual dividend of about $3.92 per share. This is within a manageable range for a utility. However, a significant concern arises from the free cash flow perspective. The FCF yield is -7.2%, indicating the company is not generating the cash needed to cover the dividend after capital expenditures. This is common for utilities in heavy investment phases but requires careful monitoring against the framework's quality indicator for positive, growing FCF. Regarding growth, AEP has a history of modest, predictable dividend increases aligned with its regulated earnings growth, which was 13.2% YoY. The balance sheet, a key quality indicator, shows leverage typical for the capital-intensive utility sector, but the negative FCF highlights reliance on external financing to fund both growth capex and shareholder returns. For an income investor, the dividend appears secure from an earnings coverage standpoint but lacks the strong FCF support that denotes high financial quality.

Dividend Overview

Dividend Yield

2.83%

Dividend / Share

$3.75

Key Metrics

Market Cap

$71.02B

P/E Ratio

19.84

Forward P/E

EPS

$6.66

PEG Ratio

-1.55

Book Value

Dividend Yield

2.83%

Profit Margin

16.36%

ROE

Dividend History

Dividend Safety

AEP Dividend Analysis

American Electric Power Company Inc (AEP) dividend analysis including yield, payout history, and sustainability metrics. The current dividend yield is 2.83%. The annual dividend per share is $3.75.

P/E ratio: 19.84. Profit margin: 16.36%. Free cash flow: $-4.96B. This page shows American Electric Power Company Inc's dividend overview, key metrics, historical payout data, and dividend safety assessment to help income-focused investors evaluate the sustainability of dividend payments.

GoodMoat's dividend analyzer evaluates payout ratios, earnings coverage, and free cash flow coverage to determine how well supported American Electric Power Company Inc's dividend payments are. Use this analysis alongside the company's financial statements and quality score to make informed income-investing decisions.