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

On November 14, Carl Icahn's Icahn Capital Management filed its form 13F. In the third quarter, it included two new stocks.

Dish Network reported Q3 revenues of $3.17 billion, down 6.7% year-over-year. Dish reported adjusted earnings per share of $0.66—down 19.5% YoY.

It’s been quite the whipsaw week for cannabis stocks, to put it mildly. First, there was the “Drake spike.” Then came the earnings disappointments.

There seems to be no end to the cannabis sector’s woes. Several prominent cannabis players reported disappointing results in the latest earnings season.

Applied Materials (AMAT) posted a fiscal 2019 fourth-quarter revenue beat and a strong fiscal 2020 first-quarter outlook yesterday.

Roku (ROKU) stock has risen more than 5% today after Bank of America (BAC) analyst Ziv Israel increased its target price from $150 to $160.