Is American Electric Power Company, Inc. a good dividend stock?

American Electric Power Company, Inc. (AEP) is a dividend-paying stock with a current dividend yield of 2.96%. Review its dividend history, payout consistency and growth to judge whether it fits your income strategy.

What is AEP's dividend yield?

The dividend yield for AEP stock is currently 2.96%.

How much does AEP pay in dividends per year?

American Electric Power Company, Inc. pays an annual dividend of $3.7800 per share over the trailing twelve months.

How often does AEP pay dividends?

AEP stock pays dividends quarterly.

Is AEP's dividend growing?

American Electric Power Company, Inc.'s 3-year dividend CAGR is 4.95%.

AEP Stock Price, Chart, Stats & News

American Electric Power Company, Inc.

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Overview Dividend safety Dividends Fundamentals

American Electric Power Company, Inc. (AEP) is a dividend-paying stock with a current dividend yield of 2.96% as of Jul 31, 2026. It pays $3.78 per share over the trailing twelve months and distributes quarterly. Its dividend has grown at a 5.30% 5-year compound annual rate.

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Market cap

19.46x

Current P/E

20.04x

Forward P/E

2.96%

Dividend yield

$3.78

AEP dividend

Dividend safety

Strong

Dividend coverage looks healthy — AEP pays out about 58% of earnings.

See the safety analysis

AEP chart

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Fundamentals

Gross margin	31.81%
Operating margin	24.33%
Pretax margin	17.56%
Net margin	16.43%
Effective tax rate	3.37%
ROA	3.05%
ROE	12.06%
D/E	1.61x
Interest coverage ratio	2.61x

All financials

AEP valuation

P/E	19.46x
P/S	3.23x
P/B	2.17x
P/CF	9.72x
P/FCF	10.33x
P/OCF	9.72x
PEG	-8.09x
EV multiple	2.32x

About

American Electric Power Company, Inc. (AEP) operates as a prominent electric utility holding company, with its core business encompassing the generation, transmission, and delivery of electricity. Serving both retail and wholesale clients across the United States, AEP organizes its extensive operations into several key segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. The firm produces its electrical power from a diverse portfolio of energy sources, including coal, lignite, natural gas, nuclear, hydroelectric, solar, and wind power, alongside other emerging technologies.