American Electric Power Company, Inc. (NASDAQ:AEP) Raises Dividend to $0.97 Per Share

Key Points

• American Electric Power raised its quarterly dividend 2.1% to $0.97 per share, equivalent to $3.88 annually and a 3.0% yield. The dividend is payable December 10 to shareholders of record November 10.
• AEP has increased its dividend for 15 consecutive years, with a current payout ratio of 60.4%; analysts expect future earnings to support a lower projected payout ratio of 55.3%.
• The company’s latest quarterly EPS of $1.36 missed the $1.48 consensus estimate, although revenue rose 7% year over year to $5.45 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $137.87.

American Electric Power Company, Inc. (NASDAQ:AEP - Get Free Report) announced a quarterly dividend on Tuesday, October 20th. Investors of record on Tuesday, November 10th will be paid a dividend of $0.97 per share on Thursday, December 10th. This represents a $3.88 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Tuesday, November 10th. This is a 2.1% increase from American Electric Power's previous quarterly dividend of $0.95.

American Electric Power has raised its dividend payment by an average of 0.1% per year over the last three years and has increased its dividend every year for the last 15 years. American Electric Power has a payout ratio of 60.4% meaning its dividend is sufficiently covered by earnings. Analysts expect American Electric Power to earn $6.87 per share next year, which means the company should continue to be able to cover its $3.80 annual dividend with an expected future payout ratio of 55.3%.

American Electric Power Price Performance

Shares of NASDAQ AEP traded up $0.40 during mid-day trading on Wednesday, hitting $127.62. 495,542 shares of the company's stock traded hands, compared to its average volume of 3,946,423. The company has a debt-to-equity ratio of 1.44, a current ratio of 0.50 and a quick ratio of 0.38. American Electric Power has a 1 year low of $112.54 and a 1 year high of $140.58. The company's 50-day moving average is $122.75 and its two-hundred day moving average is $128.52. The company has a market capitalization of $69.48 billion, a P/E ratio of 21.89, a PEG ratio of 2.58 and a beta of 0.48.

American Electric Power (NASDAQ:AEP - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.48 by ($0.12). American Electric Power had a return on equity of 9.95% and a net margin of 13.78%. The company had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the business earned $1.43 earnings per share. The firm's quarterly revenue was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, equities analysts anticipate that American Electric Power will post 6.39 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on AEP. BMO Capital Markets decreased their target price on American Electric Power from $139.00 to $135.00 and set a "market perform" rating for the company in a research report on Monday. UBS Group set a $135.00 price target on American Electric Power in a research note on Monday. Morgan Stanley cut their price target on American Electric Power from $135.00 to $128.00 and set an "overweight" rating on the stock in a research note on Friday, September 18th. JPMorgan Chase & Co. lowered their price objective on shares of American Electric Power from $140.00 to $135.00 and set a "neutral" rating for the company in a research note on Monday. Finally, Truist Financial dropped their target price on shares of American Electric Power from $146.00 to $139.00 and set a "buy" rating on the stock in a report on Monday, August 17th. Fifteen research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $137.87.

About American Electric Power

American Electric Power NASDAQ: AEP is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and institutional customers. Through its operating companies, AEP provides regulated electric service and manages power generation assets using a mix of energy resources, including natural gas, coal, nuclear, hydroelectric and renewable energy.

AEP operates one of the largest electric transmission systems in the United States and supplies electricity across portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

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