American Electric Power Company, Inc.
AEPUtilities · Stock · quarterly payer
Forward Yield
2.88%
Annual Dividend
$3.80
Payout Ratio
56%
5-Yr Growth
5.7%
Ex-Date
May 8, 2026
Frequency
Quarterly
Summary
As of July 2026, American Electric Power Company, Inc. (AEP) yields 2.88% ($3.80 per share annually), with a blended fair-value estimate of $223.10 — +69% upside, so it screens as undervalued. Dividend safety grade: A (88/100). 16 years of dividend growth.
Is AEP a good dividend stock?
YesAmerican Electric Power Company, Inc. (AEP) pays a quarterly dividend yielding 2.88% ($3.80/yr), with 16 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- 16 consecutive years of dividend growth
- Comfortable payout ratio (56%)
- Strong 5.7% 5-yr dividend growth
- 48% total price return over 5 years
- Top-tier dividend safety score
Risks
- Cut its dividend in 2003
Key Data
- Dividend Yield
- 2.88%
- Payout Ratio
- 56%
- Annual Dividend
- $3.80
- 5-Yr Avg Growth
- 5.7%
- Ex-Dividend Date
- May 8, 2026
- Years of Growth
- 16
- Frequency
- quarterly
- Beta
- 0.50
- Market Cap
- $71.3B
- P/E Ratio
- 19.5
- 5-Yr Total Return
- 48%
- 52-Week Range
- $105.70 – $140.58
- Dividend Safety
- A · 88/100
- Ever Cut?
- Yes (2003)
Frequently Asked Questions
AEP Price — Last 12 Months
Daily close
Price Return
1 Year
+19%
3 Years
+69%
5 Years
+48%
52-Week Range
$105.70 – $140.58
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is AEP worth?
Undervaluedmedium confidenceOur blended fair-value estimate for American Electric Power Company, Inc. is $223.10 per share, versus a market price of $132.14. That implies 69% of upside — a margin of safety of about 41%.
Fair Value
$223.10
Current Price
$132.14
Upside
+69%
Margin of Safety
41%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -2.6% annual free-cash-flow growth. We model 10.6% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 10.6% stage-1 growth, 2.5% terminal growth, $6.77 EPS, $3.80 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
AEP Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| May 8, 2026 | — | $0.9500 | regular |
| Feb 10, 2026 | — | $0.9500 | regular |
| Nov 10, 2025 | — | $0.9500 | regular |
| Aug 8, 2025 | — | $0.9300 | regular |
| May 9, 2025 | — | $0.9300 | regular |
| Feb 10, 2025 | — | $0.9300 | regular |
| Nov 8, 2024 | — | $0.9300 | regular |
| Aug 9, 2024 | — | $0.8800 | regular |
| May 9, 2024 | — | $0.8800 | regular |
| Feb 8, 2024 | — | $0.8800 | regular |
| Nov 9, 2023 | — | $0.8800 | regular |
| Aug 9, 2023 | — | $0.8300 | regular |
| May 9, 2023 | — | $0.8300 | regular |
| Feb 9, 2023 | — | $0.8300 | regular |
Income Calculator
At $3.80 / yr per share
