AEP vs NEE: Which Is the Better Dividend Stock?
As of July 2026, AEP (American Electric Power Company, Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. AEP offers the higher yield at 2.88%, AEP has the higher dividend-safety score, and AEP trades at the larger discount to fair value (+69%).
| Metric | AEP | NEE |
|---|---|---|
| Forward yield | 2.88% | 2.81% |
| Annual dividend | $3.80 | $2.49 |
| Payout ratio | 56% | 59% |
| Years of growth | 16 yr | 30 yr |
| 5-yr dividend growth | 5.7% | 10.1% |
| 5-yr total return | 48% | 6% |
| Dividend safety score | 88 (A) | 88 (A) |
| Fair value estimate | $223.10 | $75.63 |
| Upside to fair value | +69% | -15% |
| Frequency | quarterly | quarterly |
| Market cap | $71.3B | $183.5B |
| P/E ratio | 19.5 | 22.5 |
Higher yield
AEP
2.88%
Safer dividend
AEP
Grade A
Faster growth
NEE
10.1%
Better value
AEP
+69% upside
AEP vs NEE — FAQ
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