Reading the tape
NASDAQ: AEP
American Electric Power Company, Inc.
Utilities · Regulated Electric
Market Cap
$73.20B
52w High
$138.49
52w Low
$97.46
P/E
19.52
Volume
3.31M
Outstanding Shares
543.56M
Price vs Fundamentals
Why The Stock Is Moving
Fundamentals are supporting the moveModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: 25.34%Revenue (TTM): 9.37%FCF (TTM): 805.16%P/E: 59th pct
What changed
The stock rose 25.34% over the last year. Revenue grew 9.37% over the trailing twelve months. Operating margin moved from 23.28% to 24.33%. Free cash flow grew 805.16% over the trailing twelve months.
What the market seems to be pricing
The stock move broadly lines up with stronger business momentum, and the shares are still only around the 59th percentile of their historical P/E range.
What would invalidate this read
Operating margin is at 24.33%. Revenue grew 9.37% — this thesis depends on that trajectory holding. If revenue growth, margins, or free cash flow roll over while the stock keeps climbing, more of the move would be coming from multiple expansion than business progress.
Company profile
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States.
CEOWilliam J. Fehrman
SectorUtilities
IndustryRegulated Electric
Employees16,330
IPO dateJan 2, 1962
Valuation
Forward P/E—
EV/EBITDA12.50
Enterprise value$109.81B
Stock splits
Oct 31, 1962↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth7.26%
Gross margin31.81%▼0.33%vs FY2024
Operating margin24.33%▲1.77%vs FY2024
ROE11.5%▲4.40%vs FY2024
Analyst consensus
RatingBuy
Target price$136.20▲1.14%
22
Buy
13
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 5, 2026
Q2 FY26 · EPS est $1.55 · Revenue est $5.72B
View
Dividends
$3.78/shareQuarterlyDividend Achiever · 22yrEx-div May 8, 2026 · in 3dSafeAEP pays a dividend with a 2.81% declared yield, 22 consecutive years of growth, growing at 5.3% annually, covered 3.4× by free cash flow.
Declared Yield
2.81%
Annual Div / Share
$3.78
5yr CAGR
+5.3%
Doubles every ~13.4yr
Payout Ratio
56.09%
Safe
Dividend Growth Rate
3yr CAGR
+4.95%
5yr CAGR
+5.3%
10yr CAGR
+5.51%
Dividend Safety
9/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$3.78+3.0%
2025$3.67+5.8%
2024$3.47+6.1%
2023$3.27+6.2%
2022$3.08+5.5%
2021$2.92+5.4%
2020$2.77+5.3%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$28/yr
$2/mo
In 5 yrs
$36/yr+29%
$3/mo
In 10 yrs
$47/yr+68%
$4/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$28/yr $2/mo | $36/yr+29% $3/mo | $47/yr+68% $4/mo |
Yield-on-cost grows from 2.81% → 4.7% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
AEP has raised its dividend for 22 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 3.4× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 5.3% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.