28 Mar

All You Need to Know about AEP’s Dividend Profile

WRITTEN BY Vineet Kulkarni

Long payment history

The focus on utilities increased again recently amid broader market uncertainty and geopolitical issues. Utilities, due to their highly regulated and domestic-focused operations, generate a steady stream of earnings and thus pay stable dividends to shareholders. Ohio-based American Electric Power (AEP) has one of the longest dividend-payment histories among utility giants. It has paid a cash dividend for the last 108 consecutive years.

All You Need to Know about AEP’s Dividend Profile

Dividend yield

AEP recently paid a quarterly dividend of $0.67 per share, an increase of ~8% compared to its dividend in the same period last year. It is currently trading at a dividend yield of 3.1% against the industry (XLU) average yield of 3.0%. AEP’s five-year historical average dividend yield lies around 3.6%. Its dividend stability is highlighted by its long payment history and a stable yield over time. In comparison, Exelon Corporation (EXC) is trading at a dividend yield of 2.9%, and Consolidated Edison (ED) offers a yield of 3.5%.

Total returns

With a long dividend streak, AEP significantly outperformed peers and even broader markets in the long term. In the last five years, total returns from AEP came in at more than 100%, while broader utilities on average returned 70%. SPY returned 66% in the same period. AEP’s strong market performance contributed to its returns.

Peers Exelon and Consolidated Edison returned 81% and 94%, respectively, in the last five years.

To learn about top utilities’ dividend profiles, read Comparing Duke Energy and Southern Company’s Dividends.

Latest articles

15 Jul

Will Amazon Prime Day 2019 Break 2018's Record?

WRITTEN BY Jitendra Parashar

This year, Amazon extended its Prime Day to 48 hours instead of the 36-hour sale in July 2018, making the 2019 event the longest Prime Day ever.

In a series of tweets on Monday, Trump today weighed in on China’s GDP growth, which came in at a 27-year low.

15 Jul

OrganiGram's Third-Quarter Earnings


On Monday morning, OrganiGram's third-quarter earnings came in as a bit of a let-down. Here's why.

Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.

Huawei is preparing for “extensive layoffs” in the US, which could put the US-China trade deal on the rocks.

With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.