American Electric Power Company, Inc.
S&P 500Last update: May 9, 2026 at 09:32
Dividend Safety Rating
AEP's dividend appears safe and well-supported. Strengths include a 55.6% earnings payout ratio & 28.8% cfo payout ratio. Areas of concern: 122.5% fcf payout ratio & 2.8x interest coverage. 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
- FCF Payout Ratio: 122.5%Free cash flow is tight relative to the dividend.
- Current Ratio: 0.5xLimited short-term liquidity to meet obligations.
- 5-Year Dividend CAGR: -5.4%Dividend growth has been weak or negative.
Payout & Coverage
CautionBalance Sheet
CautionProfitability
SafeDividend Track Record
SafeAbout 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
122.51%
Stock Price
$130.16
52-Week Range
$97.46 – $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
Next 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
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Frequently Asked Questions
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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.