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American Electric Power Company, Inc. (AEP) logo

American Electric Power Company, Inc.

S&P 500

AEP/Utilities · Utilities - Regulated Electric/NASDAQ

Dividend Yield

2.90%

$3.78 · Annual Dividend

Stock Price$137.00P/E19.3MCap70.9BLast update: Jun 26, 2026 at 06:56

Dividend Safety Rating

68/ 100Safe

AEP's dividend appears safe and well-supported. Strengths include a 55.6% earnings payout ratio & 28.8% cfo payout ratio. Areas of concern: 2.8x interest coverage & 0.5x current ratio. As a utility, higher payout ratios and leverage are typical for this regulated sector.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 55.6%Low earnings payout ratio leaves room to grow the dividend.
  • CFO Payout Ratio: 28.8%Operating cash flow strongly supports the payout.
  • Gross Margin: 58.0%High gross margin signals strong pricing power.

Risks

  • Current Ratio: 0.5xLimited short-term liquidity to meet obligations.
  • 5-Year Dividend CAGR: -5.4%Dividend growth has been weak or negative.
  • Interest Coverage: 2.8xInterest coverage is thin relative to debt servicing.

Payout & Coverage

Safe
55.6%Very Safe
62.5%Caution
28.8%Very Safe

Balance Sheet

Caution

Profitability

Safe

Dividend Track Record

Safe
11+ yrsVery Safe
NoneVery Safe
GrowingVery Safe

About American Electric Power Company, Inc.

American Electric Power Company, Inc. is an electric public utility holding company that generates, transmits, and distributes electricity to retail and wholesale customers across the United States. The company operates through four primary segments: Vertically Integrated Utilities, which handles generation, transmission, and distribution for direct sale; Transmission and Distribution Utilities, focusing on transmission and distribution services; AEP Transmission Holdco, managing the development and operation of transmission facilities; and Generation and Marketing, encompassing non-regulated generation, marketing, and risk management activities. American Electric Power generates electricity using diverse energy sources including coal, nuclear, natural gas, renewable energy, hydro, solar, and wind power. The company maintains an extensive network of transmission infrastructure and serves as a critical player in the nation's power delivery system. Founded in 1906 and headquartered in Columbus, Ohio, American Electric Power operates as a major regulated utility provider, playing a vital role in supporting electricity demand across multiple regions and supporting infrastructure modernization and grid reliability initiatives.

Dividend Overview

Dividend Yield

2.90%

Annual Dividend

$3.78

Frequency

Quarterly

Payout Ratio

55.62%

FCF Payout Ratio

62.55%

52-Week Range

$101.15 - $139.44

Dividend History (2016–2025)

AEP annual dividend per share and yield history

Earnings & Profitability

AEP earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

May 8, 2026

Last Payment Date

June 10, 2026

Dividend Growth

3-Year Dividend CAGR

5.67%

5-Year Dividend CAGR

-5.41%

10-Year Dividend CAGR

-1.39%

3-Year Total Growth

17.98%

5-Year Total Growth

-24.29%

10-Year Total Growth

-13.02%

Income Calculator

AEP Dividend Calculator

Total Investment

$13,700.00

Annual Income

$378.00

Quarterly Income

$94.50

Monthly Income

$31.50

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Frequently Asked Questions

What is AEP's current dividend yield?
American Electric Power Company, Inc. (AEP) currently has a dividend yield of 2.90%, based on a stock price of $137.00 and an annual dividend of $3.78.
When is AEP's next dividend payment date?
AEP's next ex-dividend date is 2026-05-08 and the next payment date is 2026-06-10. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does AEP pay in dividends per year?
American Electric Power Company, Inc. paid $3.74 per share in annual dividends in 2025. The dividends are paid quarterly.
Has AEP been increasing its dividend?
American Electric Power Company, Inc. has grown its dividend at a 5-year CAGR of -5.41% and a 10-year CAGR of -1.39%.
Is AEP's dividend safe?
American Electric Power Company, Inc. has a payout ratio of 55.62%. Its free cash flow payout ratio is 62.55%. A payout ratio below 60% is generally considered sustainable.
How is AEP's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates American Electric Power Company, Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for utilities companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.