Both utilities are chasing the same data center boom and paying nearly identical dividends, but one carries a risk that could quietly drain cash away from shareholders before the next raise ever arrives.
American Electric Power (NASDAQ:AEP | AEP Price Prediction) or Xcel Energy (NASDAQ:XEL): which one better fits an income portfolio built for retirement? Both regulated utilities are seeing new demand from data centers, both yield about 3%, and both point to earnings growth. The split comes in what could put the payout at risk.
Over the past year, AEP gained 14.82% to $130.60. Xcel rose just 1.34% to $78.91.
Income Today: Xcel Pays a Little More Xcel yields 3.03%. AEP yields 2.97%. Xcel’s latest raise took the quarterly dividend from $0.57 to $0.5925, an increase of about 3.9%, and management targets annual increases of 4%–6%. AEP declared its newest dividend on October 20, lifting the quarterly payout from $0.95 to $0.97. That’s about 2.1%.
Coverage also shifts toward Xcel. Measured against the midpoint of 2026 guidance, Xcel’s dividend uses about 58% of earnings, a bit above its own 45%–55% target. AEP’s $3.88 annualized payout uses about 61%. Both companies have long records of raising their dividends. Since 2021, AEP’s quarterly dividend has grown about 31%, while Xcel’s has grown about 30%. Winner: Xcel, by a thin margin.
Growth Trajectory: AEP’s Contracted Load Sets It Apart AEP’s five-year capital plan is $78 billion, which should drive nearly 11% annual rate base growth. It now has 69 gigawatts of contracted load additions through 2030, up from 63 a quarter earlier, and 45 gigawatts of that is in Texas. The CFO said: “Importantly, our $78 billion capital plan does not anticipate this magnitude of load growth.” AEP also raised its 2026 operating EPS guidance to $6.25–$6.55.
Xcel kept its 2026 guidance at $4.04–$4.16 and is targeting 6% to 8-plus percent long-term growth. Its data center business is smaller: 1 gigawatt in operation or under construction and another 1 gigawatt under signed agreements. Its base plan includes very little data center growth. AEP trades at about 20x forward guidance and Xcel at about 19x, a small premium for a much larger pipeline already under contract. Winner: AEP.
Risk: Xcel’s Wildfire Costs Keep Growing Xcel estimates total losses and costs from the Smokehouse Creek fire at $503M, with only about $80M of insurance coverage left, and the Texas Attorney General has sued its SPS subsidiary. Marshall Wildfire settlements add up to $640M. Debt is $37B, or 61% of total capitalization, and Moody’s has a negative outlook on Xcel’s unsecured debt. Interest charges rose $174M in the first half of 2026.
AEP has disclosed no major wildfire settlements. Its biggest regulatory problems are partial cost disallowances in Texas. Management is holding to a funds-from-operations-to-debt target of 14% to 15%, and a $3 billion forward equity sale covers all the new equity it expects to need for the current plan. Winner: AEP, clearly.
Verdict: AEP’s Dividend Is Built to Last AEP’s dividend looks better protected for retirees who need their income to hold up. Xcel’s yield is slightly higher, but it has uninsured wildfire costs, a negative credit outlook, and rising interest expense, all of which compete with shareholders for cash. AEP gives up a few basis points of yield in exchange for contracted growth and a cleaner balance sheet. Xcel fits income investors who want faster near-term dividend increases and are willing to accept wildfire litigation risk to get them. Retirees hunting for payouts with the longest track records can see how we rated ten of them by valuation in a free Dividend Kings report.
Next, look at the third-quarter earnings calls. AEP will present a revised five-year plan for 2027 through 2031, and Xcel will give an updated capital and financing plan. Those reports will show how much of each company’s data center demand turns into rate base growth.
Contact [email protected] for any questions or corrections.
The upcoming report from American Electric Power (AEP - Free Report) is expected to reveal quarterly earnings of $2.04 per share, indicating an increase of 13.3% compared to the year-ago period. Analysts forecast revenues of $6.58 billion, representing an increase of 9.5% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 3.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific AEP metrics that are routinely monitored and predicted by Wall Street analysts.
The average prediction of analysts places 'Total Revenues- Generation & Marketing' at $567.21 million. The estimate points to a change of -18.3% from the year-ago quarter.
Analysts expect 'Total Revenues- Transmission and Distribution Utilities' to come in at $1.89 billion. The estimate indicates a year-over-year change of +12.4%.
According to the collective judgment of analysts, 'Total Revenues- Vertically Integrated Utilities' should come in at $4.19 billion. The estimate points to a change of +19.4% from the year-ago quarter.
Analysts predict that the 'Total Revenues- AEP Transmission Holdco' will reach $631.34 million. The estimate points to a change of +10.1% from the year-ago quarter.
Based on the collective assessment of analysts, 'Operating Earnings (non-GAAP)- Vertically Integrated Utilities' should arrive at $716.50 million. The estimate compares to the year-ago value of $573.50 million.
Analysts forecast 'Operating Earnings (non-GAAP)- Transmission & Distribution Utilities' to reach $291.51 million. Compared to the current estimate, the company reported $259.10 million in the same quarter of the previous year.
It is projected by analysts that the 'Operating Earnings (non-GAAP)- Generation & Marketing' will reach $29.67 million. Compared to the present estimate, the company reported $48.40 million in the same quarter last year.
Analysts' assessment points toward 'Operating Earnings (non-GAAP)- AEP Transmission Holdco' reaching $219.92 million. Compared to the present estimate, the company reported $199.90 million in the same quarter last year.
View all Key Company Metrics for AEP here>>>
Over the past month, AEP shares have recorded returns of +11.1% versus the Zacks S&P 500 composite's -1.2% change. Based on its Zacks Rank #2 (Buy), AEP will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
American Electric Power (AEP - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, AEP broke through the 200-day moving average, which suggests a long-term bullish trend.
A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.
Shares of AEP have been moving higher over the past four weeks, up 11.1%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that AEP could be poised for a continued surge.
The bullish case solidifies once investors consider AEP's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 5 higher, while the consensus estimate has increased too.
Investors should think about putting AEP on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
American Electric Power (AEP - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for AEP is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for AEP imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for AEPThis utility is expected to earn $6.39 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for AEP. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of AEP to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has American Electric Power (AEP - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
American Electric Power is one of 111 individual stocks in the Utilities sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. American Electric Power is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AEP's full-year earnings has moved 0.6% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, AEP has moved about 10.3% on a year-to-date basis. Meanwhile, stocks in the Utilities group have lost about 1.1% on average. This means that American Electric Power is outperforming the sector as a whole this year.
One other Utilities stock that has outperformed the sector so far this year is Chunghwa (CHT - Free Report) . The stock is up 14.1% year-to-date.
In Chunghwa's case, the consensus EPS estimate for the current year increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, American Electric Power belongs to the Utility - Electric Power industry, a group that includes 63 individual stocks and currently sits at #101 in the Zacks Industry Rank. This group has lost an average of 0.8% so far this year, so AEP is performing better in this area.
In contrast, Chunghwa falls under the Diversified Communication Services industry. Currently, this industry has 18 stocks and is ranked #184. Since the beginning of the year, the industry has moved -12.4%.
Going forward, investors interested in Utilities stocks should continue to pay close attention to American Electric Power and Chunghwa as they could maintain their solid performance.
AEP (AEP) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
, /PRNewswire/ -- The Board of Directors of American Electric Power (Nasdaq: AEP) has declared a regular quarterly cash dividend of 97 cents per share on the company's common stock, an increase of 2 cents per share.
The dividend is payable Dec. 10, 2026, to shareholders of record as of Nov. 10, 2026.
About AEP
American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 33,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Ohio Power Company, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.
Website Disclosure
AEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP's website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the "Email Alerts" section at https://www.aep.com/investors/.
Joint development plan aimed at benefitting Hoosiers without raising costs for customers
Companies working together to study the feasibility of a small modular reactor project in Sullivan County, Indiana, in coordination with state and local stakeholders Development and funding agreements designed to provide financial safeguards for AEP's customers and investors If the project moves beyond the development phase and is constructed, 960 megawatts of X-energy's advanced nuclear generation technology expected to connect directly to the grid to provide safe, reliable energy , /PRNewswire/ -- As energy demand grows, American Electric Power (Nasdaq: AEP) is exploring new ways to bring reliable power to the grid while prioritizing affordability for Indiana Michigan Power (I&M) customers and mitigating business risk. AEP today announced a joint development agreement with X-energy (Nasdaq: XE) to evaluate the feasibility of constructing a 960-megawatt (MW) advanced nuclear energy project at a former coal plant site in Sullivan County, Indiana. Amazon is supporting the project's development through a funding agreement.
If the development project reaches a final investment decision and moves forward with construction and commercial operation, the completed facility would add safe, clean, reliable electricity to the grid using X-energy's Xe-100 small modular reactor technology. Amazon intends to purchase the power under a long-term contract, covering the costs of the facility and its operations for the duration of the contract.
This collaboration combines AEP's power generation and nuclear operating expertise, Amazon's commitment to development capital and long-term power purchase, and X-energy's advanced nuclear technology to explore the development of a clean, safe, long-term energy solution to benefit customers and foster economic development in Indiana.
"Advanced nuclear energy has the potential to provide dependable power for over half a century while supporting economic growth in our communities. With this development plan, we are working to bring together the resources to help meet unprecedented growth in energy demand with reliable baseload power while protecting affordability for existing customers," said Bill Fehrman, AEP chairman, president and chief executive officer. "Our agreements with Amazon and X-energy will provide all necessary capital protections and financial safeguards that we have said are essential for any potential nuclear project to move forward."
X-energy's Xe-100 is an advanced nuclear technology designed to provide safe, reliable energy in a compact footprint. The initial project would include 12 Xe-100 units of 80 MW each, configured in groups of four, for a total of 960 MW.
The companies are evaluating the former site of I&M's Breed Generating Station in Sullivan County, Indiana, as a location for the potential project. Sullivan County recently became part of the Indiana Advanced Nuclear Ready Communities Program that supports the opportunity for an advanced nuclear project.
Indiana Governor Mike Braun said, "Indiana is building an energy future that prioritizes affordability for Hoosier families and businesses while driving economic growth. The decision by I&M/AEP, Amazon and X-energy to explore this technology in one of Indiana's counties represents the kind of innovation and investment that can deliver lasting benefits for our state. This project has the potential to create well-paying jobs in Sullivan County, strengthen our electric grid and further position Indiana as a national leader in advanced nuclear energy."
Should the project advance beyond the development phase into construction and commercial operation, it is expected to create jobs, expand the local tax base and strengthen Indiana's energy infrastructure for more than 60 years.
As the potential project moves forward, the companies are committed to working closely with local leaders, residents, regulators and other stakeholders.
"At Amazon, we are committed to serving the needs of our customers and achieving our Climate Pledge goal to be net-zero carbon across our operations by 2040," said Josh Weissman, VP of Data Center Infrastructure Capacity Delivery at Amazon. "This collaboration with AEP and X-energy would enable us to make progress on both while ensuring that Indiana's communities benefit. Together, we're looking to develop nearly a gigawatt of carbon-free power for the regional grid and pay our full costs without passing them to others. This project would also create jobs and generate tax revenues to benefit Hoosier communities for decades to come."
J. Clay Sell, CEO of X-energy, said, "This effort pairs AEP's 50 years of excellence in nuclear operations with the world-class expertise of Amazon to chart a new course for Indiana's energy future, powered by our Xe-100 small modular reactor. Together, we're working to advance a clean, safe, reliable solution to meet growing energy demand and benefit Indiana and its communities for generations to come."
ABOUT AEP
American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 33,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Ohio Power Company, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.
SteelPeak Wealth LLC cut its stake in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) by 16.3% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 25,762 shares of the company’s stock after selling 5,022 shares during the period. SteelPeak Wealth LLC’s holdings in American Electric Power were worth $3,056,000 at the end of the most recent reporting period.
Other large investors have also recently added to or reduced their stakes in the company. Elevation Wealth Partners LLC grew its holdings in American Electric Power by 118.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 194 shares of the company’s stock worth $27,000 after acquiring an additional 105 shares in the last quarter. Costello Asset Management INC increased its position in shares of American Electric Power by 100.0% in the 1st quarter. Costello Asset Management INC now owns 200 shares of the company’s stock worth $26,000 after purchasing an additional 100 shares during the last quarter. Parvin Asset Management LLC acquired a new stake in shares of American Electric Power in the 2nd quarter valued at about $27,000. Caitlin John LLC acquired a new stake in shares of American Electric Power in the 2nd quarter valued at about $27,000. Finally, Premier Financial Group acquired a new stake in shares of American Electric Power in the 2nd quarter valued at about $28,000. 75.24% of the stock is currently owned by institutional investors.
American Electric Power News Roundup Here are the key news stories impacting American Electric Power this week:
Positive Sentiment: Growth opportunity from Google power agreement: AEP plans to invest approximately $4 billion in a Wyoming fuel-cell power project under a 20-year agreement with Google. The contract could provide long-term revenue visibility and position AEP to benefit from rising electricity demand from artificial-intelligence and data-center operations. AEP Plans $4 Billion Fuel Cell Power Plant for Google Positive Sentiment: Additional generation capacity: AEP also agreed to purchase up to 1.6 gigawatts of Mainspring linear generators, supporting its ability to serve large commercial loads and potentially expand regulated and contracted earnings over time. AEP in deal to buy up to 1.6 GW of Mainspring linear generators Positive Sentiment: Evercore remains bullish: Evercore ISI maintained a Buy rating on AEP, reinforcing the positive view around the company’s growth prospects and demand from large electricity customers. Evercore ISI remains a Buy on AEP Neutral Sentiment: KeyCorp’s estimates were mixed: KeyCorp kept an Overweight rating and a $133 price target while raising its FY2026 EPS estimate to $6.42 and FY2027 estimate to $6.84. However, it lowered its Q3 estimate to $2.09 and made a minor reduction to its FY2030 forecast. KeyCorp estimate changes for AEP Neutral Sentiment: Analyst views remain divided: Goldman Sachs reaffirmed a Hold rating, tempering the more optimistic signal from Evercore and KeyCorp. Goldman Sachs reaffirms Hold rating on AEP Negative Sentiment: Execution and financing risk: The $4 billion fuel-cell investment and generator purchases require significant capital. Investors may remain concerned about construction execution, returns on investment, and the effect of added spending on AEP’s balance sheet. Insider Activity In other news, CAO Kate Dixon sold 2,000 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $250,000.00. Following the completion of the transaction, the chief accounting officer owned 15,856 shares of the company’s stock, valued at approximately $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.05% of the company’s stock. Analysts Set New Price Targets Several equities analysts have recently commented on the stock. TD Cowen reaffirmed a “buy” rating on shares of American Electric Power in a research report on Wednesday, September 9th. Weiss Ratings reissued a “buy (b)” rating on shares of American Electric Power in a report on Thursday, August 27th. Barclays lowered their price objective on American Electric Power from $129.00 to $120.00 and set an “equal weight” rating for the company in a report on Monday, October 12th. Citigroup cut their price objective on American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 5th. Finally, UBS Group set a $139.00 target price on American Electric Power in a report on Monday, September 21st. Fourteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $138.91.
Read Our Latest Stock Analysis on AEP
American Electric Power Stock Performance Shares of NASDAQ AEP opened at $127.14 on Monday. American Electric Power Company, Inc. has a 12-month low of $112.54 and a 12-month high of $140.58. The company has a market cap of $69.22 billion, a price-to-earnings ratio of 21.81, a price-to-earnings-growth ratio of 2.63 and a beta of 0.48. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44. The stock’s 50 day simple moving average is $122.64 and its 200 day simple moving average is $128.60.
American Electric Power (NASDAQ:AEP – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). American Electric Power had a return on equity of 9.95% and a net margin of 13.78%. The company had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the previous year, the company earned $1.43 earnings per share. American Electric Power’s quarterly revenue was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Equities research analysts expect that American Electric Power Company, Inc. will post 6.39 EPS for the current year.
(Free Report)
American Electric Power (NASDAQ:AEP) is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and institutional customers. Through its operating companies, AEP provides regulated electric service and manages power generation assets using a mix of energy resources, including natural gas, coal, nuclear, hydroelectric and renewable energy.
AEP operates one of the largest electric transmission systems in the United States and supplies electricity across portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
Further Reading Five stocks we like better than American Electric Power These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom Want to see what other hedge funds are holding AEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Electric Power Company, Inc. (NASDAQ:AEP – Free Report).
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First Citizens Bank & Trust Co. increased its holdings in shares of American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) by 88.8% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 10,986 shares of the company’s stock after buying an additional 5,168 shares during the quarter. First Citizens Bank & Trust Co.’s holdings in American Electric Power were worth $1,303,000 as of its most recent filing with the Securities and Exchange Commission.
Several other large investors have also recently added to or reduced their stakes in AEP. Costello Asset Management INC boosted its position in shares of American Electric Power by 100.0% in the first quarter. Costello Asset Management INC now owns 200 shares of the company’s stock worth $26,000 after acquiring an additional 100 shares during the last quarter. Union Savings Bank purchased a new position in shares of American Electric Power in the 4th quarter valued at $27,000. Elevation Wealth Partners LLC boosted its position in American Electric Power by 118.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 194 shares of the company’s stock worth $27,000 after purchasing an additional 105 shares during the period. Parvin Asset Management LLC purchased a new stake in American Electric Power during the 2nd quarter worth $27,000. Finally, Caitlin John LLC purchased a new stake in American Electric Power during the 2nd quarter worth $27,000. 75.24% of the stock is currently owned by hedge funds and other institutional investors.
Insider Activity In related news, CAO Kate Dixon sold 2,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $125.00, for a total value of $250,000.00. Following the transaction, the chief accounting officer owned 15,856 shares in the company, valued at approximately $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.05% of the company’s stock.
American Electric Power News Summary Here are the key news stories impacting American Electric Power this week: Positive Sentiment: AEP plans to invest approximately $4 billion in a 702-megawatt fuel-cell generation project near Cheyenne, Wyoming. The project will operate under a 20-year power purchase agreement with Google, providing long-term contracted revenue and expanding AEP’s exposure to rapidly growing data-center electricity demand. AEP will own approximately 92% of the project. AEP Advances Innovative Energy Solution for Google Positive Sentiment: AEP also reached an agreement to purchase up to 1.6 gigawatts of Mainspring linear generators. The equipment could help the utility bring generation online faster for large customers, supporting its strategy of serving data centers and other sizable electricity loads. AEP in Deal to Buy Mainspring Generators Positive Sentiment: KeyCorp maintained an “Overweight” rating and a $133 price target while raising its FY2026 EPS estimate to $6.42 from $6.36, FY2027 to $6.84 from $6.82, and FY2029 to $8.26 from $8.25. These revisions suggest confidence in AEP’s longer-term earnings growth. KeyCorp Estimates for AEP Neutral Sentiment: The Google project and broader 56-gigawatt demand pipeline strengthen AEP’s growth outlook, but the required capital spending is substantial and leaves the company exposed to construction, financing, regulatory and execution risks. Negative Sentiment: KeyCorp lowered its Q3 2026 EPS estimate to $2.09 from $2.19 and trimmed its FY2030 estimate to $9.07 from $9.10, indicating some near-term earnings pressure despite maintaining a bullish rating. Negative Sentiment: Barclays reportedly cut its price target for AEP, adding a valuation-related headwind as investors weigh the company’s large growth investments against near-term returns. AEP Stock Price Target Cut by Barclays American Electric Power Price Performance AEP opened at $124.29 on Friday. The company has a fifty day simple moving average of $122.61 and a 200 day simple moving average of $128.63. The firm has a market cap of $67.66 billion, a price-to-earnings ratio of 21.32, a PEG ratio of 2.67 and a beta of 0.48. American Electric Power Company, Inc. has a twelve month low of $112.54 and a twelve month high of $140.58. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44.
American Electric Power (NASDAQ:AEP – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.12). The firm had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.34 billion. American Electric Power had a return on equity of 9.95% and a net margin of 13.78%. The business’s quarterly revenue was up 7.0% on a year-over-year basis. During the same period last year, the firm earned $1.43 EPS. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Equities research analysts expect that American Electric Power Company, Inc. will post 6.39 EPS for the current fiscal year.
American Electric Power Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were given a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Monday, August 10th. American Electric Power’s payout ratio is presently 65.18%.
Analyst Upgrades and Downgrades Several brokerages have recently weighed in on AEP. Morgan Stanley decreased their target price on American Electric Power from $135.00 to $128.00 and set an “overweight” rating for the company in a research report on Friday, September 18th. TD Cowen reiterated a “buy” rating on shares of American Electric Power in a report on Wednesday, September 9th. KeyCorp upgraded American Electric Power from a “sector weight” rating to an “overweight” rating and set a $133.00 target price on the stock in a report on Monday. UBS Group set a $139.00 price target on American Electric Power in a research report on Monday, September 21st. Finally, Citigroup reduced their price target on American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 5th. Fourteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $138.91.
View Our Latest Analysis on American Electric Power
(Free Report)
American Electric Power (NASDAQ:AEP) is a regulated electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and other customers. Through its operating companies, AEP owns and manages a diverse portfolio of power plants, electric distribution systems and one of the largest transmission networks in the United States.
AEP serves customers across parts of 11 states, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
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, /PRNewswire/ -- American Electric Power (Nasdaq: AEP) plans to invest approximately $4 billion to advance a new 702-megawatt fuel cell generation project near Cheyenne, Wyoming, under a long-term 20-year power purchase agreement (PPA) with Google, marking a significant step in AEP's strategy to serve growing demand from large-scale customers.
Under the PPA, Google will acquire power from Cheyenne Fuel Cell, LLC, which is approximately 92% owned and controlled by AEP, and nearly 8% owned by funds advised by Basalt Infrastructure Partners, LLP. AEP and its partners plan to start construction in 2026, and the facility is expected to be fully operational by the end of 2028.
"As power demand continues to grow, AEP is bringing together new technologies and strong partnerships to deliver reliable, innovative energy solutions quickly and at scale," said Bill Fehrman, AEP chairman, president and chief executive officer. "This project demonstrates how we are creating new opportunities to meet evolving energy needs for customers both within and beyond our traditional service territory."
AEP's development and construction of this fuel cell generation facility is supporting Google's growing energy needs in the greater Cheyenne area. The planned facility uses advanced fuel cell technology developed by Bloom Energy that can be deployed rapidly and provide reliable, on-demand power to meet the needs of large-load customers. The technology generates electricity without combustion of natural gas, and the project includes plans to integrate carbon capture technology to deliver reliable, near-zero-emissions power. The project follows agreements reached between Google and Black Hills Corp., effective Sept. 30.
About AEP
American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 33,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Ohio Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.
American Electric Power (AEP.O) said on Wednesday it plans to invest about $4 billion in a 702-megawatt fuel cell project near Cheyenne, Wyoming, to supply Alphabet's Google (GOOGL.O) under a 20-year power purchase agreement.
Shares of the utility company are up over 3.1% in premarket trading.
Technology companies are seeking new sources of electricity to meet rising demand from data centers and artificial intelligence, as grid capacity and slow build-out of new infrastructure constrain supply.
Earlier this month, Google signed a similar deal with Black Hills Corp (BKH.N) to power its proposed data center in Cheyenne, with the utility planning to spend $1.8 billion on new generation capacity between 2027 and 2029.
AEP said the project will be developed by Cheyenne Fuel Cell, which is about 92% owned by the company, with the remaining stake held by funds advised by Basalt Infrastructure Partners.
Construction is expected to begin in 2026, with full operations expected by the end of 2028.
The facility will use fuel cell technology developed by Bloom Energy (BE.N) to provide on-demand electricity for Google's growing energy needs in the Cheyenne area.
AEP exercised an option to buy a substantial portion of up to 900 MW of additional Bloom cells, in a deal valued at about $2.65 billion earlier in January.
American Electric Power plans to invest about $4 billion in a Wyoming fuel cell generation project to meet growing energy demand from Alphabet's Google.
Some dividends are backed by nothing more than last quarter's earnings, but a handful of companies collect rent, regulated utility bills, and trash pickup fees under contracts that make next year's cash flow visible before the year even begins.
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A dividend is a promise about next year, and the companies most likely to keep it already know roughly what next year’s revenue will be. A business that bills through long-term leases, regulated rate structures or renewable service contracts can see its cash flow coming several quarters out. A business that depends on transaction volume, discretionary spending or commodity prices has to win its revenue again every quarter. That visibility is what lets a board commit to a payout and keep raising it. Each of the five names below has a specific contract behind its dividend, and the best example is a retail landlord whose portfolio is 99.8% occupied.
Agree Realty: Monthly Rent From Walmart and Home Depot Funds a Monthly Check Agree Realty (NYSE:ADC) owns 2,825 properties across all 50 states and DC, leased mostly to retailers on net leases, where the tenant pays rent each month plus most property costs. The properties it bought last quarter carry a weighted average lease term of 11.2 years, and over 73% of their rent comes from investment-grade retailers such as Walmart and Home Depot. Only 18 leases, representing 40 basis points of annualized base rents, come up for renewal during the rest of the year.
Yield and safety: Agree Realty pays $0.267 per share every month, an annualized $3.204. At $65.28, that works out to a 4.9% high yield. The second-quarter payout was 70% of AFFO per share (AFFO is the cash-flow measure REITs use to fund dividends), and management called the dividend “very well covered.” Free cash flow left after the dividend is expected to top $140 million this year. Liquidity is about $1.9 billion, net debt to recurring EBITDA is 5.2 times (3.7 times pro forma), and there are no material debt maturities until 2028. In the recent record, the monthly dividend has stepped up about every six months, rising from $0.217 to today’s level.
Bull case: The shares are down 5.69% year to date and 9.04% over the past month, yet management raised its full-year AFFO guidance to $4.57 to $4.59 per share. That leaves the stock yielding more on a growing stream of rent.
Risk: The rent stops recurring when a tenant fails. AMC theaters are the largest item on Agree Realty’s watch list, though management said the list is “lower than it was a year ago or two years ago.”
Prologis: Warehouse Leases Rolling Over at Rents 36% Higher Prologis (NYSE:PLD) collects rent on multi-year logistics leases, and expiring leases are being renewed at much higher rates. The company signed a record 67 million square feet of leases last quarter, occupancy reached 95.5%, and rent change on rollover topped 36% on a net effective basis. Its in-place leases still sit 17% below market, which works out to nearly $800 million of embedded NOI that requires no further rent growth. Its data center builds are, in management’s words, “build-to-suits, long-term leases with hyperscale customers.”
Yield and safety: The forward dividend of $4.28 yields 3.4% at $127.19. That payout equals 68.8% of the low end of 2026 core FFO guidance, which is $6.22 to $6.30 per share. Debt to EBITDA is 4.7 times. The quarterly dividend has risen every year in the record, from $0.44 to $1.07, and payments run back to 1999.
Bull case: Cash same-store NOI grew 8.5%, and the data center power pipeline is now 5.8 gigawatts. Rent growth that is already locked in gives the dividend room to keep climbing.
Risk: Leases only recur if tenants renew. Occupancy is 90.6% in Asia and 83.7% in Central Pennsylvania, a reminder that rollover can produce empty space as well as rent increases.
Duke Energy: 8.7 Million Customers Paying Regulator-Set Bills Duke Energy (NYSE:DUK | DUK Price Prediction) bills about 8.73 million retail customers each month at rates set by state commissions, and that customer count grew 1.4%. Its North Carolina DEC rate case settlement includes a 9.8% ROE and a 53% equity capital structure. Duke also has 7.8 gigawatts of electric service agreements with data center customers, and those contracts include minimum take provisions. CFO Brian Savoy said those provisions “serve as the basis for revenue growth projections.”
Yield and safety: The forward dividend of $4.34 yields 3.7% at $115.86, or 66.3% of the low end of 2026 adjusted EPS guidance ($6.55 to $6.80). Duke’s most recent 2% raise marked what management called over 20 years of consecutive annual dividend increases. The balance sheet carries a heavy load, with $144.2 billion of liabilities against $54.75 billion of equity. Duke has already priced $600 million of equity through its ATM program to reduce future funding needs.
Bull case: Duke targets 5% to 7% annual EPS growth through 2030 and expects to land in the top half of that range from 2028. The stock trades at a forward P/E of 16.
Risk: State commissions can reset allowed returns. CEO Harry Sideris said “affordability is top of mind,” and DEC and DEP orders are expected by mid-November.
American Electric Power: Hyperscalers Posting Collateral Up Front American Electric Power (NASDAQ:AEP) adds a layer of large-load tariffs on top of its regulated retail bills. Management said those tariffs “require customers to make long-term commitments and support the investments necessary to serve their demand.” AEP has 69 gigawatts of contracted load additions through 2030, and in the past month it collected nearly $2 billion in cash or collateral backing 45 gigawatts of Texas projects.
Yield and safety: The $3.80 annualized dividend yields 3.1% at $122.84. That equals 60.8% of the low end of raised 2026 operating EPS guidance ($6.25 to $6.55), which makes it the lower earnings payout of the two utilities in this group. AEP has paid quarterly dividends without interruption since 1999, and the quarterly amount has climbed from $0.50 to $0.95. It has held at that level for the latest four payments. A $3 billion forward equity deal covers all of the marketed equity AEP expects to need for its capital plan, and management is targeting FFO to debt of 14% to 15%.
Bull case: A $78 billion five-year capital plan supports nearly 11% annual rate base growth and 7% to 9% annual earnings growth, which gives the dividend a long runway. Shares are up 7.95% year to date.
Risk: Contracted load still has to connect to the grid. AEP acknowledged that not all queued projects will come online and that ERCOT reviews could shift timing.
Waste Management: Trash Pickup Contracts That Reprice Every Year Waste Management (NYSE:WM) runs on scheduled collection contracts with municipal, commercial and residential customers, and it raises prices on them every year. Core price rose 5.7%, while collection operating costs rose less than 1.7%. Its landfill and transfer network, which management calls a “moat,” makes those contracts hard for rivals to take.
Yield and safety: The forward dividend of $3.78 yields 1.8% at $210.67, the lowest yield in this group but the deepest coverage. First-half dividends of $764 million used just 37.8% of first-half free cash flow of $2.02 billion, and full-year free cash flow guidance is $3.75 to $3.85 billion. Leverage of 2.96 times sits inside the company’s 2.5 times to 3 times target. The quarterly dividend has risen each year in the record from $0.29 to $0.945, and the latest increase was from $0.825.
Bull case: Second-quarter free cash flow rose 34.5% to $1.10 billion, and the full-year margin outlook rose to 31% to 31.2%. WM still bought back $1 billion of stock in the first half on top of the dividend. The stock trades at a forward P/E of 23.
Risk: Customers can leave when prices rise. Management said “when we lose national accounts, it ends up being as a result of price,” and it cut its revenue outlook to $26.275 billion to $26.475 billion because of lower volume.
Contracts Make These Dividends Predictable Each of these five dividends is backed by a specific contract: a net lease, a warehouse lease, a state rate order, a take-or-pay tariff or a collection agreement. Agree Realty offers the highest yield and a monthly check, Waste Management offers the deepest free cash flow coverage, and the two utilities and Prologis fall in between, with payouts under 70% of guided earnings or FFO. The signals to keep an eye on are tenant credit, lease rollover rates, commission rulings and customer churn, because those are the forces that can break the recurrence.
Contact [email protected] for any questions or corrections.
AEP is borrowing heavily and selling stock to fund a $78 billion buildout for data center demand, all while its dividend raise pace quietly shrinks. Whether that combination protects income investors or sets them up for disappointment depends on four…
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American Electric Power (NASDAQ:AEP | AEP Price Prediction) raised its 2026 earnings guidance this summer even though it is spending far more cash than it generates. For income investors, the dividend case comes down to that gap. AEP is funding a $78 billion capital plan for 2026 through 2030 to serve data center demand, and the dividend has to share the cash.
A 3.1% Yield Backed by a 60% Payout AEP pays $0.95 per quarter. At $120.88, that yields about 3.1%. With 2026 operating EPS guidance of $6.25 to $6.55, the dividend takes roughly 58% to 61% of earnings.
AEP has raised its quarterly payout every year since 2013, but increases are getting smaller. The late 2024 raise to $0.93 was 5.7%; the late 2025 raise to $0.95 was just 2.2%. AEP cut its dividend in 2003, from $0.60 to $0.35.
Cash Covers the Dividend While Debt Covers the Buildout In 2025, AEP generated $6.94 billion in operating cash flow and paid $2.01 billion in dividends, using about 29% of operating cash. Capital spending is the strain. In the first half of 2026, capex and dividends left AEP about $3.33 billion short.
Borrowing filled most of that gap. Total debt rose from $50.24 billion at year-end to $53.50 billion by June 30, with cash at only $375 million. AEP also sold $3 billion in stock through forward contracts settling by May 2028. Management targets an FFO-to-debt ratio of 14% to 15%.
Regulators Help Make Data Centers Pay for Growth The regulated model protects the dividend. AEP has 69 gigawatts of new load contracted through 2030 under fully executed agreements, which puts AEP clearly among the utilities feeding the data-center buildout (we rounded up seven of the power, cooling, and networking names behind that same wave, available at no cost in here). In Texas, AEP collected nearly $2 billion in cash or collateral from customers. CEO Bill Fehrman explained:
“That is why we have led efforts to implement large load tariffs and structure contracts to ensure growth helps pay for growth.”
AEP earned 9.2% on its regulated business last quarter and targets 9.5% by 2030.
How AEP Stacks Up Against Duke and Southern Duke Energy (NYSE:DUK) has a $103 billion plan targeting 5% to 7% EPS growth, versus AEP’s 7%–9%. Southern Company (NYSE:SO) had a 78-year dividend run as of mid-2025, longer than AEP’s record.
Four Threats That Could Squeeze the Payout Contracted load doesn’t show up, or comes late. FFO-to-debt falls below the 14% floor and puts the credit rating at risk. Regulators reject more costs, as they did with the partial rejections of the Pirkey Plant costs and AEP Texas’s Unified Tracker Mechanism. ERCOT, the Texas grid operator, slows down approval of new projects. A 2026 Colorado legislative report describes the first risk:
“If a utility expands its transmission or generation system for this potential growth and then the data center either does not materialize, leaves after a short period, or uses less energy than expected, then those infrastructure investments may increase electricity costs for other customers.”
Verdict: Durable, With Smaller Raises Likely AEP’s dividend is built to survive the buildout. Earnings cover it by a wide margin, and debt and stock sales fund the expansion rather than the dividend. Expect future increases to lag earnings growth. AEP declared its fourth-quarter dividend on October 22 in both 2024 and 2025.
Contact [email protected] for any questions or corrections.
Ferguson Wellman Capital Management Inc. decreased its holdings in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) by 22.5% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 700,054 shares of the company’s stock after selling 203,738 shares during the quarter. American Electric Power makes up approximately 1.0% of Ferguson Wellman Capital Management Inc.’s holdings, making the stock its 25th largest holding. Ferguson Wellman Capital Management Inc. owned 0.13% of American Electric Power worth $83,054,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Costello Asset Management INC raised its position in American Electric Power by 100.0% in the first quarter. Costello Asset Management INC now owns 200 shares of the company’s stock valued at $26,000 after purchasing an additional 100 shares during the period. Union Savings Bank bought a new position in American Electric Power during the fourth quarter worth $27,000. Elevation Wealth Partners LLC raised its stake in American Electric Power by 118.0% during the second quarter. Elevation Wealth Partners LLC now owns 194 shares of the company’s stock worth $27,000 after acquiring an additional 105 shares during the period. Parvin Asset Management LLC acquired a new stake in American Electric Power in the second quarter worth $27,000. Finally, Caitlin John LLC acquired a new stake in shares of American Electric Power in the second quarter valued at approximately $27,000. 75.24% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In Several brokerages have commented on AEP. Truist Financial dropped their price target on shares of American Electric Power from $146.00 to $139.00 and set a “buy” rating on the stock in a research report on Monday, August 17th. Weiss Ratings reissued a “buy (b)” rating on shares of American Electric Power in a research note on Thursday, August 27th. TD Cowen restated a “buy” rating on shares of American Electric Power in a research note on Wednesday, September 9th. Morgan Stanley decreased their price objective on shares of American Electric Power from $135.00 to $128.00 and set an “overweight” rating for the company in a report on Friday, September 18th. Finally, UBS Group set a $139.00 price objective on shares of American Electric Power in a research note on Monday, September 21st. Thirteen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, American Electric Power presently has a consensus rating of “Moderate Buy” and a consensus target price of $139.62.
Get Our Latest Stock Analysis on American Electric Power American Electric Power Trading Up 0.5% AEP traded up $0.58 during mid-day trading on Monday, reaching $120.15. The stock had a trading volume of 689,513 shares, compared to its average volume of 4,001,053. The stock has a market capitalization of $65.41 billion, a P/E ratio of 20.62, a P/E/G ratio of 2.53 and a beta of 0.48. American Electric Power Company, Inc. has a 52 week low of $112.54 and a 52 week high of $140.58. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50. The firm’s fifty day simple moving average is $123.64 and its two-hundred day simple moving average is $129.01.
American Electric Power (NASDAQ:AEP – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.34 billion. American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same period last year, the firm earned $1.43 earnings per share. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, equities analysts predict that American Electric Power Company, Inc. will post 6.38 EPS for the current year.
American Electric Power Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were given a dividend of $0.95 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $3.80 annualized dividend and a yield of 3.2%. American Electric Power’s payout ratio is 65.18%.
Insiders Place Their Bets In other American Electric Power news, CAO Kate Dixon sold 2,000 shares of the stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total value of $250,000.00. Following the completion of the sale, the chief accounting officer owned 15,856 shares in the company, valued at $1,982,000. This trade represents a 11.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is currently owned by corporate insiders.
(Free Report)
American Electric Power (NASDAQ:AEP) is a regulated electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and other customers. Through its operating companies, AEP owns and manages a diverse portfolio of power plants, electric distribution systems and one of the largest transmission networks in the United States.
AEP serves customers across parts of 11 states, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
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Eastern Bank boosted its holdings in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) by 1.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 431,974 shares of the company’s stock after buying an additional 7,762 shares during the quarter. Eastern Bank owned approximately 0.08% of American Electric Power worth $51,249,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently added to or reduced their stakes in the business. Costello Asset Management INC increased its holdings in American Electric Power by 100.0% in the first quarter. Costello Asset Management INC now owns 200 shares of the company’s stock valued at $26,000 after purchasing an additional 100 shares during the period. Union Savings Bank bought a new stake in shares of American Electric Power in the 4th quarter valued at about $27,000. Elevation Wealth Partners LLC increased its stake in shares of American Electric Power by 118.0% in the second quarter. Elevation Wealth Partners LLC now owns 194 shares of the company’s stock valued at $27,000 after buying an additional 105 shares during the period. Parvin Asset Management LLC acquired a new stake in shares of American Electric Power in the second quarter valued at about $27,000. Finally, Caitlin John LLC bought a new position in shares of American Electric Power during the second quarter worth about $27,000. 75.24% of the stock is owned by institutional investors.
American Electric Power Stock Up 0.5% Shares of NASDAQ AEP traded up $0.64 during midday trading on Monday, hitting $120.21. 679,127 shares of the stock traded hands, compared to its average volume of 4,001,053. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50. American Electric Power Company, Inc. has a one year low of $112.54 and a one year high of $140.58. The business has a 50 day moving average price of $123.64 and a two-hundred day moving average price of $129.01. The company has a market cap of $65.44 billion, a PE ratio of 20.64, a P/E/G ratio of 2.53 and a beta of 0.48.
American Electric Power (NASDAQ:AEP – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.12). The business had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.34 billion. American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. American Electric Power’s revenue was up 7.0% compared to the same quarter last year. During the same period in the previous year, the business posted $1.43 EPS. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, equities analysts predict that American Electric Power Company, Inc. will post 6.38 EPS for the current year. American Electric Power Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were issued a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend was Monday, August 10th. American Electric Power’s payout ratio is currently 65.18%.
Analyst Upgrades and Downgrades A number of equities analysts recently commented on the company. UBS Group set a $139.00 price objective on American Electric Power in a research note on Monday, September 21st. Barclays dropped their price target on shares of American Electric Power from $138.00 to $129.00 and set an “equal weight” rating on the stock in a research report on Monday, August 3rd. Morgan Stanley reduced their price objective on shares of American Electric Power from $135.00 to $128.00 and set an “overweight” rating on the stock in a research note on Friday, September 18th. Jefferies Financial Group lifted their target price on shares of American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Finally, Citigroup dropped their target price on shares of American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. Thirteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $139.62.
View Our Latest Research Report on AEP
Insider Activity at American Electric Power In related news, CAO Kate Dixon sold 2,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $250,000.00. Following the transaction, the chief accounting officer directly owned 15,856 shares in the company, valued at approximately $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is currently owned by corporate insiders.
(Free Report)
American Electric Power (NASDAQ:AEP) is a regulated electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and other customers. Through its operating companies, AEP owns and manages a diverse portfolio of power plants, electric distribution systems and one of the largest transmission networks in the United States.
AEP serves customers across parts of 11 states, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
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, /PRNewswire/ -- Kentucky Power has finalized an amended agreement that would double its contracted electric demand with TeraWulf Inc. (Nasdaq: WULF) while delivering significant long-term benefits for customers and communities across eastern Kentucky.
If approved by the Kentucky Public Service Commission, the amended agreement is expected to provide $100 million in winter bill credits funded by TeraWulf for Kentucky Power's residential customers over the first 10 years of the contract. For a typical residential customer, the bill credits could amount to approximately $25 per month during the winter heating season, with credits beginning in 2029.
The expanded agreement would increase contracted electric demand at TeraWulf's Muskie Data campus in Grayson, Kentucky, from 500 megawatts (MW) to 1 gigawatt (GW). It also advances planned delivery of the second 500-MW phase from 2030 to 2029, subject to Commission approval and Kentucky Power's construction schedule. The campus's planned expansion is expected to generate new economic activity through infrastructure investment, construction activity, permanent jobs and new tax revenue for local communities.
These investments will help support the continued modernization of Kentucky Power's system. In addition to paying all applicable service charges, TeraWulf has agreed to pay the estimated financing costs associated with construction of Kentucky Power's planned 760-MW combined-cycle generation facility at Big Sandy, helping ensure the costs associated with serving increased demand are not shifted to existing customers.
"At Kentucky Power, we are working to bring new businesses and economic opportunity to eastern Kentucky, creating meaningful benefits for the customers and communities we serve," said Cindy Wiseman, president and chief operating officer of Kentucky Power. "By providing a decade's worth of direct residential bill credits, supporting critical energy infrastructure investments and helping ensure the costs associated with new demand are paid by the customers driving that growth, this agreement demonstrates how economic development can create lasting value for our customers and communities."
"This agreement shows how large-scale investment can support both economic growth and meaningful benefits for existing utility customers," said Paul Prager, chairman and chief executive officer of TeraWulf. "Kentucky Power has been a strong partner in advancing Muskie's development. Expanding contracted power to 1 GW and bringing the second phase forward to 2029 positions us to meet strong customer demand and bring lasting investment to eastern Kentucky."
The agreement also includes collateral requirements and other financial protections designed to safeguard Kentucky Power customers. Kentucky Power plans to file the amended contract and seek related regulatory approvals later this year.
Learn more about how Kentucky Power protects customers while supporting economic development and large-load growth at www.kentuckypower.com/company/about/rates/data-centers.
About Kentucky Power
Kentucky Power, with headquarters in Ashland, provides electric service to about 163,000 customers in 20 eastern Kentucky counties, including Boyd, Breathitt, Carter, Clay, Elliott, Floyd, Greenup, Johnson, Knott, Lawrence, Leslie, Letcher, Lewis, Magoffin, Martin, Morgan, Owsley, Perry, Pike and Rowan. Kentucky Power is an operating company in the American Electric Power (Nasdaq: AEP) system. For more information, visit kentuckypower.com.
Bank of America Corp DE purchased a new position in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 12,269,851 shares of the company’s stock, valued at approximately $1,678,638,000. Bank of America Corp DE owned about 2.25% of American Electric Power at the end of the most recent quarter.
Other institutional investors and hedge funds have also made changes to their positions in the company. BlackRock Inc. purchased a new position in shares of American Electric Power in the second quarter worth about $6,980,601,000. Geode Capital Management LLC raised its position in American Electric Power by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 13,823,744 shares of the company’s stock worth $1,587,841,000 after buying an additional 83,285 shares during the last quarter. GQG Partners LLC purchased a new position in American Electric Power during the 2nd quarter worth approximately $1,404,094,000. Barclays PLC lifted its stake in American Electric Power by 0.5% during the 4th quarter. Barclays PLC now owns 10,626,841 shares of the company’s stock valued at $1,225,381,000 after acquiring an additional 57,807 shares during the period. Finally, Victory Capital Management Inc. lifted its stake in American Electric Power by 17.4% during the 4th quarter. Victory Capital Management Inc. now owns 6,316,688 shares of the company’s stock valued at $728,378,000 after acquiring an additional 937,346 shares during the period. 75.24% of the stock is currently owned by institutional investors and hedge funds.
American Electric Power Stock Down 0.9% AEP stock opened at $122.23 on Tuesday. American Electric Power Company, Inc. has a one year low of $105.70 and a one year high of $140.58. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50. The firm’s fifty day moving average is $127.70 and its 200 day moving average is $130.30. The firm has a market cap of $66.54 billion, a PE ratio of 20.97, a P/E/G ratio of 2.61 and a beta of 0.51.
American Electric Power (NASDAQ:AEP – Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.12). American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The firm had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same period in the previous year, the company earned $1.43 earnings per share. The company’s revenue was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, research analysts forecast that American Electric Power Company, Inc. will post 6.38 EPS for the current year. American Electric Power Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were given a dividend of $0.95 per share. The ex-dividend date was Monday, August 10th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.1%. American Electric Power’s dividend payout ratio (DPR) is 65.18%.
Analyst Ratings Changes AEP has been the subject of several recent research reports. Jefferies Financial Group raised their target price on shares of American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a report on Wednesday, July 1st. TD Cowen reaffirmed a “buy” rating on shares of American Electric Power in a report on Wednesday, September 9th. Truist Financial reduced their price objective on American Electric Power from $146.00 to $139.00 and set a “buy” rating for the company in a research note on Monday, August 17th. Mizuho decreased their price objective on American Electric Power from $141.00 to $135.00 and set a “neutral” rating for the company in a report on Friday, July 31st. Finally, Barclays lowered their target price on American Electric Power from $138.00 to $129.00 and set an “equal weight” rating on the stock in a research note on Monday, August 3rd. Thirteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $140.19.
Read Our Latest Research Report on American Electric Power
Insider Transactions at American Electric Power In related news, CAO Kate Dixon sold 2,000 shares of American Electric Power stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total value of $250,000.00. Following the sale, the chief accounting officer owned 15,856 shares of the company’s stock, valued at approximately $1,982,000. This trade represents a 11.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.05% of the company’s stock.
(Free Report)
American Electric Power Company, Inc (NASDAQ:AEP) is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and other customers. Its operations include regulated electric utilities, power generation facilities and one of the largest electricity transmission networks in the United States.
AEP provides energy delivery and related utility services through operating companies serving customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
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Baird Financial Group Inc. trimmed its stake in shares of American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) by 2.5% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 625,314 shares of the company’s stock after selling 15,798 shares during the quarter. Baird Financial Group Inc. owned approximately 0.11% of American Electric Power worth $85,549,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors also recently made changes to their positions in the company. Costello Asset Management INC increased its position in American Electric Power by 100.0% during the 1st quarter. Costello Asset Management INC now owns 200 shares of the company’s stock valued at $26,000 after purchasing an additional 100 shares during the period. Basepoint Wealth LLC acquired a new position in shares of American Electric Power in the 4th quarter worth approximately $27,000. Union Savings Bank acquired a new position in shares of American Electric Power in the 4th quarter worth approximately $27,000. Elevation Wealth Partners LLC boosted its stake in shares of American Electric Power by 118.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 194 shares of the company’s stock valued at $27,000 after purchasing an additional 105 shares during the last quarter. Finally, Parvin Asset Management LLC bought a new stake in shares of American Electric Power in the 2nd quarter valued at $27,000. 75.24% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In AEP has been the subject of a number of analyst reports. Citigroup lowered their target price on shares of American Electric Power from $148.00 to $142.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. Mizuho decreased their price target on American Electric Power from $141.00 to $135.00 and set a “neutral” rating for the company in a report on Friday, July 31st. Jefferies Financial Group lifted their price objective on American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a research report on Wednesday, July 1st. Truist Financial dropped their price objective on American Electric Power from $146.00 to $139.00 and set a “buy” rating on the stock in a research note on Monday, August 17th. Finally, Barclays cut their target price on American Electric Power from $138.00 to $129.00 and set an “equal weight” rating on the stock in a research report on Monday, August 3rd. Thirteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat, American Electric Power currently has an average rating of “Moderate Buy” and an average target price of $140.19.
View Our Latest Analysis on American Electric Power American Electric Power Trading Up 0.7% NASDAQ:AEP opened at $125.42 on Wednesday. American Electric Power Company, Inc. has a 12 month low of $105.70 and a 12 month high of $140.58. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44. The stock has a market capitalization of $68.28 billion, a price-to-earnings ratio of 21.51, a PEG ratio of 2.63 and a beta of 0.51. The firm has a fifty day simple moving average of $128.78 and a two-hundred day simple moving average of $130.50.
American Electric Power (NASDAQ:AEP – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.12). The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.34 billion. American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. American Electric Power’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.43 EPS. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Analysts expect that American Electric Power Company, Inc. will post 6.39 EPS for the current fiscal year.
American Electric Power Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Monday, August 10th. American Electric Power’s dividend payout ratio is 65.18%.
(Free Report)
American Electric Power Company, Inc (NASDAQ:AEP) is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and other customers. Its operations include regulated electric utilities, power generation facilities and one of the largest electricity transmission networks in the United States.
AEP provides energy delivery and related utility services through operating companies serving customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
Read More Five stocks we like better than American Electric Power Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For Want to see what other hedge funds are holding AEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Electric Power Company, Inc. (NASDAQ:AEP – Free Report).
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American Electric Power is rated a Buy, supported by robust demand growth, especially from data center expansions in its service areas. AEP raised FY 2026 operating earnings guidance to $6.25–$6.55 per share, projecting 7–8% annual growth through 2027 and >9% CAGR through 2030. A $78 billion capex plan targets transmission, generation, and distribution, with Texas as the largest beneficiary, underpinning long-term earnings visibility.
American Electric Power is well-positioned to benefit from surging data center-driven electricity demand and robust contracted load growth. AEP's $78 billion capital plan, backed by 69 GW of contracted incremental load, supports management's 7–9% long-term EPS growth outlook. With a 19.5x forward P/E and a 3.05% yield, AEP offers low-volatility, income, and growth.
Compass Financial Management LLC bought a new stake in shares of American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 4,159 shares of the company’s stock, valued at approximately $543,000.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Costello Asset Management INC boosted its position in shares of American Electric Power by 100.0% in the first quarter. Costello Asset Management INC now owns 200 shares of the company’s stock valued at $26,000 after acquiring an additional 100 shares during the period. Legacy Wealth Managment LLC ID increased its position in American Electric Power by 200.0% during the fourth quarter. Legacy Wealth Managment LLC ID now owns 231 shares of the company’s stock worth $27,000 after acquiring an additional 154 shares during the period. Basepoint Wealth LLC bought a new position in American Electric Power during the fourth quarter worth $27,000. Acumen Wealth Advisors LLC acquired a new position in American Electric Power during the 4th quarter valued at $27,000. Finally, Union Savings Bank acquired a new position in American Electric Power during the 4th quarter valued at $27,000. Institutional investors and hedge funds own 75.24% of the company’s stock.
Analyst Ratings Changes A number of analysts have weighed in on AEP shares. LADENBURG THALM/SH SH reduced their price target on shares of American Electric Power from $148.00 to $143.00 and set a “buy” rating for the company in a report on Thursday, June 18th. Morgan Stanley dropped their price objective on shares of American Electric Power from $139.00 to $135.00 and set an “overweight” rating on the stock in a report on Friday, August 21st. JPMorgan Chase & Co. cut their price objective on shares of American Electric Power from $141.00 to $140.00 and set a “neutral” rating for the company in a research report on Friday, May 15th. Barclays reduced their target price on shares of American Electric Power from $138.00 to $129.00 and set an “equal weight” rating for the company in a research note on Monday, August 3rd. Finally, Citigroup decreased their target price on American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 5th. Thirteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, American Electric Power has an average rating of “Moderate Buy” and a consensus target price of $140.19.
Get Our Latest Research Report on American Electric Power American Electric Power Price Performance Shares of AEP opened at $124.50 on Monday. The stock has a market cap of $67.78 billion, a price-to-earnings ratio of 21.36, a P/E/G ratio of 2.63 and a beta of 0.51. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44. American Electric Power Company, Inc. has a 12 month low of $105.70 and a 12 month high of $140.58. The company has a 50-day moving average price of $129.28 and a two-hundred day moving average price of $130.56.
American Electric Power (NASDAQ:AEP – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the firm posted $1.43 earnings per share. The firm’s revenue for the quarter was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Equities analysts predict that American Electric Power Company, Inc. will post 6.39 EPS for the current fiscal year.
American Electric Power Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Monday, August 10th. American Electric Power’s dividend payout ratio is 65.18%.
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
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Allen Mooney & Barnes Investment Advisors LLC cut its holdings in shares of American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) by 6.8% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 142,926 shares of the company’s stock after selling 10,358 shares during the quarter. American Electric Power comprises 3.0% of Allen Mooney & Barnes Investment Advisors LLC’s investment portfolio, making the stock its 6th biggest position. Allen Mooney & Barnes Investment Advisors LLC’s holdings in American Electric Power were worth $19,554,000 as of its most recent SEC filing.
Several other large investors also recently bought and sold shares of AEP. Brighton Jones LLC increased its holdings in shares of American Electric Power by 11.5% during the 4th quarter. Brighton Jones LLC now owns 10,601 shares of the company’s stock worth $978,000 after buying an additional 1,095 shares during the last quarter. Acadian Asset Management LLC acquired a new position in American Electric Power in the first quarter valued at about $320,000. Sivia Capital Partners LLC boosted its stake in American Electric Power by 149.5% during the second quarter. Sivia Capital Partners LLC now owns 4,891 shares of the company’s stock worth $507,000 after buying an additional 2,931 shares during the period. Gamco Investors INC. ET AL increased its position in shares of American Electric Power by 4.4% during the second quarter. Gamco Investors INC. ET AL now owns 2,505 shares of the company’s stock valued at $260,000 after acquiring an additional 105 shares during the last quarter. Finally, AXA S.A. increased its position in shares of American Electric Power by 95.7% during the second quarter. AXA S.A. now owns 79,111 shares of the company’s stock valued at $8,209,000 after acquiring an additional 38,684 shares during the last quarter. Hedge funds and other institutional investors own 75.24% of the company’s stock.
American Electric Power Price Performance American Electric Power stock opened at $124.71 on Friday. The firm has a market cap of $67.89 billion, a PE ratio of 21.39, a price-to-earnings-growth ratio of 2.62 and a beta of 0.51. The company’s 50 day moving average is $129.57 and its two-hundred day moving average is $130.59. American Electric Power Company, Inc. has a 52-week low of $105.70 and a 52-week high of $140.58. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44.
American Electric Power (NASDAQ:AEP – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.12). American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The company had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter last year, the company earned $1.43 EPS. American Electric Power’s revenue for the quarter was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, research analysts expect that American Electric Power Company, Inc. will post 6.38 EPS for the current fiscal year. American Electric Power Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Monday, August 10th. American Electric Power’s dividend payout ratio (DPR) is presently 65.18%.
Wall Street Analysts Forecast Growth AEP has been the topic of several recent analyst reports. Jefferies Financial Group upped their price objective on shares of American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a report on Wednesday, July 1st. LADENBURG THALM/SH SH dropped their target price on shares of American Electric Power from $148.00 to $143.00 and set a “buy” rating for the company in a report on Thursday, June 18th. Raymond James Financial restated an “outperform” rating and set a $144.00 price target on shares of American Electric Power in a research note on Friday, May 8th. Truist Financial lowered their price target on American Electric Power from $146.00 to $139.00 and set a “buy” rating for the company in a research report on Monday, August 17th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of American Electric Power in a research note on Thursday, August 27th. Thirteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $140.19.
View Our Latest Stock Analysis on American Electric Power
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
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Atlas Engineered Products Ltd. (AEP:CA) Q2 2026 Earnings Call August 25, 2026 11:00 AM EDT
Company Participants
Mohammad Abassi - Founder, CEO, President & Director
Melissa MacRae - Chief Financial Officer
Conference Call Participants
Jake Bouma
Russell Stanley - Beacon Securities Limited, Research Division
Nicholas Boychuk - ATB Cormark Capital Markets Inc., Research Division
Presentation
Jake Bouma
Good morning, everyone. Welcome, and thank you for joining Atlas Engineered Products' Q2 2026 Earnings Call. I am Jake Bouma, an IR consultant for AEP. Today on the line discussing AEP's Q2 2026 financial results and company highlights are the company's President, CEO and Founder, Hadi Abassi; and CFO, Melissa MacRae. Following their remarks, we'll open up the call for an analyst Q&A session.
Before handing over the call to Hadi, please note that information we present today could contain forward-looking information that is based on management's expectations, estimates and projections. Please consider the risk factors, including those in the filings made by AEP on SEDAR when reviewing this information. Also, all amounts discussed will be in Canadian dollars unless otherwise noted.
Hadi, please proceed with your remarks.
Mohammad Abassi
Founder, CEO, President & Director
Thank you, Jake. Good morning, everyone, and thank you for joining us. The second quarter of 2026 reflected the strength and resilience of our team, delivering a stronger financial performance over the prior year and the first quarter of 2026. While the market conditions in Ontario and British Columbia remain competitive, quoting and other activities continue to be encouraging, and we are seeing benefits from the investment we have made in sales management and operational capabilities.
We have made important progress in our first robotic truss manufacturing facility in Clinton, Ontario, with equipment installed and commissioning underway as of late this July. We anticipate delivering our first truss orders from this facility
, /PRNewswire/ -- The state of Indiana has called on utilities to take action to make energy more affordable, and Indiana Michigan Power (I&M) is meeting that call with a plan to deliver savings and stability for customers.
I&M has unveiled one of the nation's largest base rate reduction plans, which includes approximately $59 million in 2027 bill reductions expected to help a residential customer in Indiana using 1,000 kWh a month save an estimated $100 per year. The plan also provides stability for Indiana residential customers by proposing to freeze all rates on their monthly bill for three consecutive years.
The planned reduction comes as rates for I&M's Indiana customers have been reduced twice in the first six months of this year, demonstrating I&M's continued focus on managing costs and delivering value to customers as Indiana's economy and electricity demand grow. The plan is made possible thanks to load growth and increased revenue from large customers including data centers.
I&M anticipates a decision from the Indiana Utility Regulatory Commission (IURC) on the proposed plan in June 2027. Under this timeline, customers are expected to see savings reflected on their monthly bill starting in summer 2027.
"As Indiana continues to experience unprecedented growth, we are taking action to help our customers benefit from that growth through lower costs, enhanced value and continued investments to strengthen our system," said Maryam S. Brown, I&M president and chief operating officer. "We are proud to join forces with state leaders to advance economic development and make energy more affordable – while continuing to provide system reliability upgrades."
Indiana Governor Mike Braun said, "From day one, my administration has focused on making energy more affordable for Hoosiers. Economic growth should not come at the expense of existing customers. Indiana Michigan Power's proposal shows what's possible when we create the right environment for investment while keeping Hoosier families front and center. Lower utility bills, long-term rate certainty and continued investment in our electric system are exactly the kinds of results we want to deliver for Indiana."
Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its approximately 2,000 employees serve more than 600,000 customers. More than 85% of its energy delivered in 2024 was emission-free. I&M has at its availability various sources of generation including 2,278 MW of nuclear generation in Michigan, 450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation in both states and approximately 35 MW of large-scale solar generation in both states. The company's generation portfolio also includes 1,497 MW of coal-fueled generation.
American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 33,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.
Bank OZK bought a new stake in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 5,957 shares of the company’s stock, valued at approximately $815,000.
A number of other hedge funds have also recently added to or reduced their stakes in the company. Caitlin John LLC purchased a new stake in American Electric Power in the 2nd quarter valued at about $27,000. Equitable Holdings Inc. acquired a new position in American Electric Power in the second quarter worth $4,405,000. Centaurus Financial Inc. acquired a new position in American Electric Power during the 2nd quarter valued at approximately $188,000. FSA Advisors Inc. bought a new stake in shares of American Electric Power during the second quarter valued at approximately $349,000. Finally, Coastal Bridge Advisors LLC acquired a new stake in American Electric Power in the second quarter worth about $312,000. Institutional investors and hedge funds own 75.24% of the company’s stock.
American Electric Power Stock Down 0.5% Shares of NASDAQ:AEP opened at $122.71 on Friday. The company has a fifty day moving average of $130.53 and a 200-day moving average of $130.63. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50. American Electric Power Company, Inc. has a 52-week low of $105.70 and a 52-week high of $140.58. The company has a market capitalization of $66.80 billion, a PE ratio of 21.05, a price-to-earnings-growth ratio of 2.25 and a beta of 0.52.
American Electric Power (NASDAQ:AEP – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The firm had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period last year, the company posted $1.43 EPS. The business’s revenue was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, equities analysts predict that American Electric Power Company, Inc. will post 6.37 EPS for the current fiscal year. American Electric Power Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a $0.95 dividend. The ex-dividend date is Monday, August 10th. This represents a $3.80 annualized dividend and a yield of 3.1%. American Electric Power’s dividend payout ratio (DPR) is currently 65.18%.
Wall Street Analyst Weigh In A number of research firms have commented on AEP. JPMorgan Chase & Co. reduced their price objective on shares of American Electric Power from $141.00 to $140.00 and set a “neutral” rating for the company in a research note on Friday, May 15th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of American Electric Power in a research report on Monday, June 1st. Wells Fargo & Company raised their price objective on shares of American Electric Power from $144.00 to $148.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Morgan Stanley cut their target price on shares of American Electric Power from $139.00 to $135.00 and set an “overweight” rating for the company in a research note on Friday, August 21st. Finally, Citigroup cut their price target on American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 5th. Thirteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $140.19.
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(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
Read More Five stocks we like better than American Electric Power Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape SEC Probe Puts Wall Street Leverage Risk Back in Focus A Bearish-Dollar Options Surge Raises the Stakes for Warsh at Jackson Hole Five Below’s Turnaround Is Working—But Has the Stock Run Too Far? Want to see what other hedge funds are holding AEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Electric Power Company, Inc. (NASDAQ:AEP – Free Report).
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Ancora Advisors LLC bought a new stake in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 10,862 shares of the company’s stock, valued at approximately $1,486,000.
Other institutional investors and hedge funds also recently made changes to their positions in the company. Activest Wealth Management boosted its position in American Electric Power by 72.2% in the fourth quarter. Activest Wealth Management now owns 217 shares of the company’s stock valued at $25,000 after buying an additional 91 shares in the last quarter. Costello Asset Management INC increased its holdings in shares of American Electric Power by 100.0% during the first quarter. Costello Asset Management INC now owns 200 shares of the company’s stock worth $26,000 after buying an additional 100 shares in the last quarter. Legacy Wealth Managment LLC ID lifted its stake in shares of American Electric Power by 200.0% in the 4th quarter. Legacy Wealth Managment LLC ID now owns 231 shares of the company’s stock valued at $27,000 after acquiring an additional 154 shares during the last quarter. Basepoint Wealth LLC bought a new position in shares of American Electric Power in the 4th quarter valued at $27,000. Finally, Acumen Wealth Advisors LLC acquired a new stake in shares of American Electric Power during the 4th quarter valued at $27,000. Institutional investors own 75.24% of the company’s stock.
Wall Street Analysts Forecast Growth A number of brokerages recently weighed in on AEP. Wall Street Zen lowered American Electric Power from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Morgan Stanley dropped their target price on American Electric Power from $139.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday, August 21st. JPMorgan Chase & Co. cut their price target on American Electric Power from $141.00 to $140.00 and set a “neutral” rating on the stock in a research note on Friday, May 15th. Jefferies Financial Group boosted their price target on American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a report on Wednesday, July 1st. Finally, Truist Financial lowered their price objective on American Electric Power from $146.00 to $139.00 and set a “buy” rating for the company in a research note on Monday, August 17th. Thirteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $140.19.
Check Out Our Latest Research Report on American Electric Power American Electric Power Price Performance AEP stock opened at $122.71 on Friday. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44. The firm has a market cap of $66.80 billion, a price-to-earnings ratio of 21.05, a PEG ratio of 2.25 and a beta of 0.52. The company’s fifty day simple moving average is $130.53 and its 200 day simple moving average is $130.63. American Electric Power Company, Inc. has a 12-month low of $105.70 and a 12-month high of $140.58.
American Electric Power (NASDAQ:AEP – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.12). The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.34 billion. American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The business’s quarterly revenue was up 7.0% compared to the same quarter last year. During the same period last year, the business earned $1.43 EPS. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, analysts expect that American Electric Power Company, Inc. will post 6.37 earnings per share for the current year.
American Electric Power Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Monday, August 10th. American Electric Power’s dividend payout ratio (DPR) is presently 65.18%.
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
Further Reading Five stocks we like better than American Electric Power Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape SEC Probe Puts Wall Street Leverage Risk Back in Focus A Bearish-Dollar Options Surge Raises the Stakes for Warsh at Jackson Hole Five Below’s Turnaround Is Working—But Has the Stock Run Too Far? Want to see what other hedge funds are holding AEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Electric Power Company, Inc. (NASDAQ:AEP – Free Report).
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Peter Thiel has been a tech guru for decades. He co-founded major companies such as PayPal and Palantir and made significant early investments in Meta Platforms and Space Exploration Technologies, among others.
Thiel also runs a hedge fund, Thiel Macro, which hasn't been very active in recent quarters. But in the second quarter, Thiel's fund resumed buying, investing more than $418 million in eight new stocks. They all have a common theme.
Image source: Getty Images.
Powering artificial intelligence Here are the eight companies Thiel Macro invested in during the second quarter and how much of the portfolio each position consumed:
Amazon: 28% of the fund and a position of nearly $118 million Vista Energy: 18% of the fund and a nearly $76 million position Vistra: 14% of the fund and a nearly $59.1 million position American Electric Power (AEP -0.33%): 10% of the fund and a roughly $42.2 million position DTE Energy: 9.6% of the fund and a nearly $40.3 million position FirstEnergy: 9.5% of the fund and a nearly $40 million position CMS Energy: 9.4% of the fund and a nearly $39.6 million position X-Energy: 0.9% of the fund and a nearly $3.7 million position Just by looking at the names, it's pretty clear that the theme is power. If you dig a little further, it's even clearer that Thiel's bet on power has to do with the artificial intelligence (AI) revolution.
Amazon is building data centers for its cloud division, Amazon Web Services, which helps power frontier AI models such as those at Anthropic and OpenAI. The company has committed $220 billion in capital expenditures this year, most of which is for AI infrastructure.
Vista Energy is a large oil and gas company in Latin America, focused on shale in Argentina. Vistra is a U.S. electricity company that provides power to customers, businesses, and communities.
American Electric Power is one of the largest electric companies in the U.S., with a transmission network spanning 40,000 miles.
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DTE Energy serves 2.3 million customers in Southeast Michigan but also has a natural gas unit and a portfolio of non-utility power businesses, including industrial energy services, renewable natural gas, and energy marketing and trading.
FirstEnergy is an electric utility serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, and Maryland. CMS Energy is Michigan's largest electric and natural gas utility, serving 6.8 million customers. CMS also owns an independent power generation subsidiary that does business in several states.
X-Energy is building small modular nuclear reactors to produce clean, sustainable energy.
The Thiel trade Thiel's trade is that power demand, which has been little changed during the past two decades, will enable these companies to deploy capital at regulated returns to modernize the grid and, in some cases, expand capacity, in part to meet growing demand from data centers that are fueling AI.
American Electric Power, DTE, CMS, and FirstEnergy are regulated utilities, so they have a monopoly in their markets. Their returns are capped by regulators but essentially guaranteed.
In May, American Electric Power said it had increased its five-year capital spending by $6 billion to $78 billion. In July, the company announced that it has a line of sight to an additional $10 billion in capital investments beyond its initial five-year plan.
Furthermore, the company's load is expected to grow to 69 gigawatts (GW) by 2030, up from a plan of 63 GW in May, fueled by agreements with hyperscalers and data center developers.
On the other hand, a company like Vistra is an independent power producer and not under regulatory jurisdiction. Rather, it sells electricity wholesale to markets in response to demand.
Thiel's likely thesis is not exactly a new take, as many experts have noted that the world will need more power to fuel AI.
The risk, of course, is that AI hits a snag or that there is a huge overbuild of AI infrastructure. However, power demand is also expected to rise due to other factors, such as a warmer climate, which has significantly increased the use of air conditioning, and the electrification of heat and certain forms of transportation.
Ultimately, if you believe AI is here to stay, the world will need more power to fuel it.
Key Takeaways NextEra Energy leads AEP in earnings estimate growth, net margin and return on equity.NEE plans nearly $94.7B in investments through 2030, exceeding AEP's $78B plan for 2026-2030.AEP trades at a lower 18.33X forward P/E versus NEE's 19.67X, while both exceed the industry. The Zacks Utility - Electric Power industry offers stable, long-term income, supported by regulated operations that allow companies to recover costs and earn consistent returns. Steady electricity demand from residential, commercial & industrial customers and a sudden rise in demand from AI-based data centers are creating fresh opportunities for the industry. The attractive dividends further strengthen the sector’s defensive appeal. Lower interest rates are also beneficial, as they reduce financing costs for capital-intensive infrastructure investments.
At the same time, utilities are evolving through large-scale investments in renewable energy, grid modernization and electrification. The development of large-scale battery storage projects and the use of advanced technologies to map and reinforce infrastructure in areas vulnerable to severe weather are improving operational reliability. Against this backdrop, NextEra Energy (NEE - Free Report) and American Electric Power (AEP - Free Report) stand out as leading utilities positioned to benefit from rising power demand and the clean energy transition.
NextEra Energy benefits from its strong renewable energy platform and regulated Florida utility operations. Investments in wind, solar, battery storage and grid infrastructure support long-term growth while providing investors with a combination of stability and clean energy exposure. As the parent of Florida Power & Light and NextEra Energy Resources, NEE manages one of the world’s largest wind and solar portfolios.
American Electric Power relies on a large regulated utility and transmission network. Its investments in grid modernization, transmission infrastructure and cleaner generation, supported by steady cash flows and dividends, strengthen its long-term growth prospects. AEP is well-positioned to benefit from rising power demand and decarbonization efforts, reinforcing its role as a stable, income-focused utility.
Both NEE and AEP offer attractive utility exposure, but a comparison of their fundamentals can help determine which stock currently presents the stronger investment opportunity.
NEE & AEP’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for NextEra Energy’s earnings per share in 2026 and 2027 has increased year over year by 8.09% and 8.73%, respectively.
Image Source: Zacks Investment Research
The same for American Electric Power’s earnings per share in 2026 and 2027 has increased year over year by 6.7% and 7.66%, respectively.
Image Source: Zacks Investment Research
NEE’s Net Margin Higher Than AEPNet margin measures the percentage of revenue retained as profit after deducting all expenses, taxes and interest.
NEE’s net margin is currently pegged at 28.44% compared with AEP’s 14.19%.
Image Source: Zacks Investment Research
Return on EquityReturn on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
NextEra Energy’s current ROE is 12.28% compared with AEP’s 9.95%. NEE also outperformed the industry’s ROE of 11.4%.
Image Source: Zacks Investment Research
Long-term Capital Expenditure PlansCapital expenditure is critical in the sector, as it drives infrastructure development, system reliability and long-term growth. Utilities must consistently invest in power generation, transmission and distribution networks to meet rising demand, integrate renewable energy sources and comply with evolving regulatory standards.
NextEra Energy plans to invest nearly $94.7 billion through 2030 to strengthen its infrastructure and add more clean electricity generation assets. American Electric Power plans to invest $78 billion in the 2026-2030 period to strengthen its electric transmission, distribution and generation infrastructure.
Debt to CapitalThe capital-intensive Zacks Utilities sector requires substantial investment to modernize infrastructure, expand operations and adopt new technologies. Utilities generally supplement internally generated cash with external borrowings to fund these projects. The current 3.5-3.75% interest-rate environment should lower financing costs, improve financial flexibility and support long-term capital investment and earnings growth.
NextEra Energy’s long-term debt-to-capital currently stands at 59.21% compared with American Electric Power’s 59.04%. Both companies are using debt to fund their business.
Image Source: Zacks Investment Research
ValuationNextEra Energy currently appears to trade at a premium compared with American Electric Power on a Price/Earnings Forward 12-month basis. (P/E- F12M).
NEE and AEP are currently trading at 19.67X and 18.33X, respectively, compared with the industry’s 15.29X.
Image Source: Zacks Investment Research
Summing UpNextEra Energy and American Electric Power are investing heavily in their infrastructure to serve millions of customers across the United States.
AEP is currently trading at a lower valuation than NEE. However, NEE’s stronger earnings estimate revisions, superior net margins, higher return on equity and larger capital investment program make it the more compelling investment choice in the utility sector.
Based on the above discussion, NextEra Energy currently has an edge over American Electric Power, though both presently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Archer Investment Corp acquired a new stake in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 14,699 shares of the company’s stock, valued at approximately $2,011,000.
Other institutional investors also recently modified their holdings of the company. Elevation Wealth Partners LLC increased its position in American Electric Power by 118.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 194 shares of the company’s stock worth $27,000 after purchasing an additional 105 shares in the last quarter. Costello Asset Management INC grew its stake in American Electric Power by 100.0% during the first quarter. Costello Asset Management INC now owns 200 shares of the company’s stock worth $26,000 after purchasing an additional 100 shares during the period. Parvin Asset Management LLC bought a new position in shares of American Electric Power during the 2nd quarter worth about $27,000. Caitlin John LLC bought a new stake in shares of American Electric Power during the second quarter worth about $27,000. Finally, Activest Wealth Management lifted its holdings in shares of American Electric Power by 72.2% in the fourth quarter. Activest Wealth Management now owns 217 shares of the company’s stock valued at $25,000 after purchasing an additional 91 shares in the last quarter. Institutional investors own 75.24% of the company’s stock.
Analyst Ratings Changes A number of equities research analysts have recently commented on the company. Barclays lowered their target price on American Electric Power from $138.00 to $129.00 and set an “equal weight” rating on the stock in a research note on Monday, August 3rd. LADENBURG THALM/SH SH cut their price objective on shares of American Electric Power from $148.00 to $143.00 and set a “buy” rating for the company in a research note on Thursday, June 18th. Wall Street Zen cut shares of American Electric Power from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Citigroup decreased their target price on American Electric Power from $148.00 to $142.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. Finally, Mizuho cut their price objective on shares of American Electric Power from $141.00 to $135.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. Thirteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $140.19.
Get Our Latest Stock Report on AEP American Electric Power Stock Down 0.3% Shares of NASDAQ:AEP opened at $122.31 on Friday. The company has a market cap of $66.59 billion, a price-to-earnings ratio of 20.98, a PEG ratio of 2.24 and a beta of 0.52. American Electric Power Company, Inc. has a 12 month low of $105.70 and a 12 month high of $140.58. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44. The company has a 50-day moving average price of $130.42 and a 200 day moving average price of $130.57.
American Electric Power (NASDAQ:AEP – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). The firm had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.34 billion. American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The business’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period last year, the company earned $1.43 earnings per share. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. As a group, equities research analysts predict that American Electric Power Company, Inc. will post 6.37 earnings per share for the current year.
American Electric Power Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $0.95 dividend. This represents a $3.80 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Monday, August 10th. American Electric Power’s dividend payout ratio is presently 65.18%.
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
Further Reading Five stocks we like better than American Electric Power 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding AEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Electric Power Company, Inc. (NASDAQ:AEP – Free Report).
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EP Wealth Advisors LLC purchased a new position in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 34,286 shares of the company’s stock, valued at approximately $4,691,000.
Other institutional investors and hedge funds have also recently made changes to their positions in the company. Essex Financial Services Inc. grew its position in American Electric Power by 0.9% in the first quarter. Essex Financial Services Inc. now owns 8,215 shares of the company’s stock worth $1,077,000 after acquiring an additional 75 shares in the last quarter. Cornerstone Advisory LLC lifted its stake in American Electric Power by 1.3% during the first quarter. Cornerstone Advisory LLC now owns 5,831 shares of the company’s stock worth $764,000 after purchasing an additional 75 shares during the last quarter. Financial Enhancement Group LLC boosted its holdings in shares of American Electric Power by 3.3% in the 1st quarter. Financial Enhancement Group LLC now owns 2,383 shares of the company’s stock worth $319,000 after purchasing an additional 76 shares in the last quarter. Community Trust & Investment Co. boosted its holdings in shares of American Electric Power by 1.7% in the 2nd quarter. Community Trust & Investment Co. now owns 4,730 shares of the company’s stock worth $647,000 after purchasing an additional 77 shares in the last quarter. Finally, J2 Capital Management Inc increased its position in shares of American Electric Power by 2.0% during the 1st quarter. J2 Capital Management Inc now owns 4,099 shares of the company’s stock valued at $537,000 after purchasing an additional 79 shares during the last quarter. Hedge funds and other institutional investors own 75.24% of the company’s stock.
American Electric Power Stock Down 3.8% Shares of NASDAQ:AEP opened at $120.94 on Friday. The stock’s 50-day moving average price is $131.01 and its 200-day moving average price is $130.48. American Electric Power Company, Inc. has a 12-month low of $105.70 and a 12-month high of $140.58. The stock has a market capitalization of $65.84 billion, a P/E ratio of 20.74, a price-to-earnings-growth ratio of 2.17 and a beta of 0.52. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44.
American Electric Power (NASDAQ:AEP – Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). The company had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.34 billion. American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The company’s revenue was up 7.0% on a year-over-year basis. During the same period last year, the firm posted $1.43 EPS. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, equities analysts anticipate that American Electric Power Company, Inc. will post 6.37 earnings per share for the current year. American Electric Power Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Monday, August 10th. American Electric Power’s dividend payout ratio is 65.18%.
Wall Street Analysts Forecast Growth A number of brokerages recently weighed in on AEP. LADENBURG THALM/SH SH decreased their price objective on American Electric Power from $148.00 to $143.00 and set a “buy” rating on the stock in a report on Thursday, June 18th. Wall Street Zen lowered American Electric Power from a “hold” rating to a “sell” rating in a research note on Saturday, May 9th. Barclays reduced their price target on shares of American Electric Power from $138.00 to $129.00 and set an “equal weight” rating on the stock in a research report on Monday, August 3rd. Jefferies Financial Group lifted their price target on shares of American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Finally, JPMorgan Chase & Co. lowered their price objective on shares of American Electric Power from $141.00 to $140.00 and set a “neutral” rating for the company in a report on Friday, May 15th. Thirteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, American Electric Power has an average rating of “Moderate Buy” and a consensus price target of $140.19.
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American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
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B. Metzler seel. Sohn & Co. AG purchased a new stake in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 46,665 shares of the company’s stock, valued at approximately $6,384,000.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Kayne Anderson Capital Advisors LP acquired a new stake in shares of American Electric Power in the second quarter worth $8,448,000. Silvant Capital Management LLC purchased a new stake in American Electric Power in the 2nd quarter worth $2,278,000. LaSalle St. Investment Advisors LLC acquired a new stake in American Electric Power in the 2nd quarter worth about $239,000. Ceredex Value Advisors LLC acquired a new stake in shares of American Electric Power in the second quarter valued at about $51,516,000. Finally, Oxford Financial Group LTD. LLC purchased a new position in American Electric Power during the second quarter worth about $1,208,000. Hedge funds and other institutional investors own 75.24% of the company’s stock.
Wall Street Analyst Weigh In Several research analysts have recently commented on the company. Morgan Stanley lowered their price target on American Electric Power from $139.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday. JPMorgan Chase & Co. decreased their target price on American Electric Power from $141.00 to $140.00 and set a “neutral” rating for the company in a research report on Friday, May 15th. Raymond James Financial restated an “outperform” rating and set a $144.00 price target on shares of American Electric Power in a research note on Friday, May 8th. Truist Financial decreased their target price on shares of American Electric Power from $146.00 to $139.00 and set a “buy” rating on the stock in a research report on Monday, August 17th. Finally, Scotiabank increased their target price on American Electric Power from $131.00 to $140.00 and gave the company a “sector perform” rating in a report on Wednesday, May 6th. Thirteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $140.19.
Get Our Latest Stock Analysis on AEP American Electric Power Price Performance Shares of AEP opened at $120.94 on Friday. American Electric Power Company, Inc. has a 52 week low of $105.70 and a 52 week high of $140.58. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44. The firm has a market cap of $65.84 billion, a price-to-earnings ratio of 20.74, a PEG ratio of 2.25 and a beta of 0.52. The stock has a 50 day moving average of $131.01 and a 200-day moving average of $130.48.
American Electric Power (NASDAQ:AEP – Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The company had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same quarter in the previous year, the firm earned $1.43 earnings per share. The business’s revenue was up 7.0% on a year-over-year basis. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. As a group, analysts forecast that American Electric Power Company, Inc. will post 6.37 EPS for the current year.
American Electric Power Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a dividend of $0.95 per share. The ex-dividend date is Monday, August 10th. This represents a $3.80 annualized dividend and a dividend yield of 3.1%. American Electric Power’s dividend payout ratio (DPR) is 65.18%.
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
See Also Five stocks we like better than American Electric Power Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding AEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Electric Power Company, Inc. (NASDAQ:AEP – Free Report).
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Bank of New York Mellon Corp bought a new position in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 3,621,775 shares of the company’s stock, valued at approximately $495,495,000. Bank of New York Mellon Corp owned 0.67% of American Electric Power as of its most recent filing with the Securities and Exchange Commission.
A number of other institutional investors also recently added to or reduced their stakes in the business. Essex Financial Services Inc. increased its position in shares of American Electric Power by 0.9% in the first quarter. Essex Financial Services Inc. now owns 8,215 shares of the company’s stock valued at $1,077,000 after buying an additional 75 shares in the last quarter. Cornerstone Advisory LLC increased its position in American Electric Power by 1.3% during the 1st quarter. Cornerstone Advisory LLC now owns 5,831 shares of the company’s stock worth $764,000 after purchasing an additional 75 shares in the last quarter. Financial Enhancement Group LLC raised its position in shares of American Electric Power by 3.3% in the first quarter. Financial Enhancement Group LLC now owns 2,383 shares of the company’s stock valued at $319,000 after buying an additional 76 shares during the last quarter. Community Trust & Investment Co. lifted its stake in shares of American Electric Power by 1.7% during the 2nd quarter. Community Trust & Investment Co. now owns 4,730 shares of the company’s stock worth $647,000 after purchasing an additional 77 shares during the period. Finally, J2 Capital Management Inc boosted its holdings in American Electric Power by 2.0% in the first quarter. J2 Capital Management Inc now owns 4,099 shares of the company’s stock valued at $537,000 after acquiring an additional 79 shares during the last quarter. Hedge funds and other institutional investors own 75.24% of the company’s stock.
American Electric Power Stock Down 3.8% AEP opened at $120.94 on Friday. The company has a debt-to-equity ratio of 1.44, a current ratio of 0.50 and a quick ratio of 0.38. The company has a market capitalization of $65.84 billion, a PE ratio of 20.74, a price-to-earnings-growth ratio of 2.25 and a beta of 0.52. American Electric Power Company, Inc. has a fifty-two week low of $105.70 and a fifty-two week high of $140.58. The business has a 50-day moving average of $131.01 and a 200-day moving average of $130.48.
American Electric Power (NASDAQ:AEP – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The firm had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter last year, the company earned $1.43 earnings per share. The firm’s revenue was up 7.0% on a year-over-year basis. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Equities research analysts forecast that American Electric Power Company, Inc. will post 6.37 EPS for the current fiscal year. American Electric Power Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $0.95 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $3.80 annualized dividend and a yield of 3.1%. American Electric Power’s payout ratio is currently 65.18%.
Wall Street Analyst Weigh In Several research analysts have recently weighed in on AEP shares. Scotiabank upped their target price on shares of American Electric Power from $131.00 to $140.00 and gave the company a “sector perform” rating in a research note on Wednesday, May 6th. TD Cowen upped their price target on shares of American Electric Power from $141.00 to $148.00 and gave the company a “buy” rating in a report on Friday, May 15th. Citigroup decreased their price objective on shares of American Electric Power from $148.00 to $142.00 and set a “neutral” rating for the company in a report on Wednesday, August 5th. Wall Street Zen lowered American Electric Power from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Finally, Morgan Stanley decreased their target price on American Electric Power from $139.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday. Thirteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $140.19.
View Our Latest Research Report on AEP
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
Featured Stories Five stocks we like better than American Electric Power Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates?
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Advisors Capital Management LLC bought a new position in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 7,675 shares of the company’s stock, valued at approximately $1,050,000.
Several other hedge funds have also modified their holdings of the company. Vanguard Group Inc. grew its holdings in American Electric Power by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 52,496,895 shares of the company’s stock worth $6,053,417,000 after purchasing an additional 828,588 shares during the last quarter. BlackRock Inc. acquired a new position in shares of American Electric Power during the second quarter worth $6,980,601,000. State Street Corp lifted its holdings in shares of American Electric Power by 5.2% during the 4th quarter. State Street Corp now owns 30,437,776 shares of the company’s stock valued at $3,509,780,000 after purchasing an additional 1,514,865 shares during the last quarter. Morgan Stanley lifted its holdings in shares of American Electric Power by 1.9% during the 4th quarter. Morgan Stanley now owns 14,661,858 shares of the company’s stock valued at $1,690,659,000 after purchasing an additional 271,879 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of American Electric Power by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 13,823,744 shares of the company’s stock worth $1,587,841,000 after purchasing an additional 83,285 shares in the last quarter. 75.24% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades Several research analysts recently issued reports on the company. LADENBURG THALM/SH SH reduced their target price on American Electric Power from $148.00 to $143.00 and set a “buy” rating on the stock in a research report on Thursday, June 18th. JPMorgan Chase & Co. lowered their price target on American Electric Power from $141.00 to $140.00 and set a “neutral” rating for the company in a report on Friday, May 15th. Morgan Stanley dropped their price target on American Electric Power from $139.00 to $135.00 and set an “overweight” rating on the stock in a research note on Friday. Weiss Ratings restated a “buy (b)” rating on shares of American Electric Power in a report on Monday, June 1st. Finally, Mizuho decreased their price objective on shares of American Electric Power from $141.00 to $135.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. Thirteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, American Electric Power currently has an average rating of “Moderate Buy” and a consensus target price of $140.19.
Get Our Latest Stock Report on American Electric Power American Electric Power Stock Down 3.8% Shares of AEP stock opened at $120.94 on Friday. The stock has a 50 day moving average of $131.01 and a 200 day moving average of $130.48. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44. The stock has a market cap of $65.84 billion, a P/E ratio of 20.74, a P/E/G ratio of 2.25 and a beta of 0.52. American Electric Power Company, Inc. has a twelve month low of $105.70 and a twelve month high of $140.58.
American Electric Power (NASDAQ:AEP – Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.12). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The firm had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same period last year, the firm earned $1.43 earnings per share. American Electric Power’s revenue for the quarter was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. As a group, sell-side analysts expect that American Electric Power Company, Inc. will post 6.37 EPS for the current year.
American Electric Power Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a dividend of $0.95 per share. The ex-dividend date is Monday, August 10th. This represents a $3.80 dividend on an annualized basis and a yield of 3.1%. American Electric Power’s dividend payout ratio is currently 65.18%.
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
Featured Articles Five stocks we like better than American Electric Power Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding AEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Electric Power Company, Inc. (NASDAQ:AEP – Free Report).
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Zámořské akciové trhy během dnešního obchodování vzrostly a zakončily volatilní týden v kladných číslech. Podporu trhům poskytla příznivá makroekonomická data ukazující nejrychlejší tempo růstu podnikatelské aktivity v USA za poslední čtyři roky. Index Dow Jones si připsal 0,98 % na 53277,01 bodu, širší S&P 500 vzrostl o 0,43 % na 7674,36 bodu a technologický Nasdaq Composite zpevnil o 0,43 % na 26180,46 bodu. Z jednotlivých odvětví indexu S&P 500 dosáhly nejvyšších zisků základní materiály s růstem o 2,2 %, následované zdravotní péčí o 1,3 % a zbytnou spotřebou o 1 %. Naopak nejvýraznější pokles zaznamenaly utility, které ztratily 2,3 %, zatímco energie a reality odepsaly 0,2 % a 0 %. Mezi jednotlivými tituly výrazně posílila společnost Robinhood Markets (HOOD) o 14 %, dále pak Moderna (MRNA) o 8,9 %, Freeport-McMoRan (FCX) o 7,7 %, Coinbase Global (COIN) o 8,2 % a Albemarle Corp (ALB) o 6,8 %. Největší propad naopak postihl společnost Marvell Technology (MRVL), jež oslabila o 5,6 %, a nedařilo se ani firmám Sempra (SRE) se ztrátou 5,1 %, Edison International (EIX) o 4,1 %, American Electric Power (AEP) o 3,8 % a CenterPoint Energy (CNP) s poklesem o 3,6 %. Na komoditních trzích mírně vzrostla cena severoamerické lehké ropy WTI o 0,2 % na 87 dolarů za barel, zatímco spotové zlato posílilo o 2,4 % na 4624,69 dolaru za unci. Americký dolar celkově mírně oslabil. Výnos desetiletých amerických vládních dluhopisů vzrostl o tři bazické body na 4,73 %. Výrazný růst zaznamenal bitcoin, jehož cena stoupla o 6,1 % na 77086,77 dolaru.
Index Dow Jones +0,98 % na 53277,01 b.
S&P 500 +0,43 % na 7674,36 b.
Nasdaq Composite +0,43 % na 26180,46 b.
Index S&P 500 +0,43 % na 7674,36 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +2,2 % Utility -2,3 % Zdravotní péče +1,3 % Energie -0,2 % Finanční sektor +1 % Reality 0 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Robinhood Markets (HOOD) +14 % Marvell Technology (MRVL) -5,6 % Moderna (MRNA) +8,9 % Sempra (SRE) -5,1 % Coinbase Global (COIN) +8,2 % Edison International (EIX) -4,1 % Freeport-McMoRan (FCX) +7,7 % American Electric Power (AEP) -3,8 % Albemarle Corp (ALB) +6,8 % CenterPoint Energy (CNP) -3,6 %
Daniel Marván
Fio banka, a.s.
Prohlášení
BlackRock Inc. bought a new stake in American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 51,024,057 shares of the company’s stock, valued at approximately $6,980,601,000. BlackRock Inc. owned 9.37% of American Electric Power as of its most recent SEC filing.
Other large investors have also modified their holdings of the company. HITE Hedge Asset Management LLC purchased a new stake in shares of American Electric Power in the 4th quarter valued at approximately $32,032,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its position in shares of American Electric Power by 2.9% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 293,033 shares of the company’s stock worth $33,869,000 after purchasing an additional 8,302 shares during the period. Vanguard Group Inc. increased its holdings in American Electric Power by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 52,496,895 shares of the company’s stock valued at $6,053,417,000 after purchasing an additional 828,588 shares during the last quarter. Dockside LLC acquired a new stake in American Electric Power in the 4th quarter valued at approximately $1,912,000. Finally, Barclays PLC raised its position in American Electric Power by 0.5% in the fourth quarter. Barclays PLC now owns 10,626,841 shares of the company’s stock valued at $1,225,381,000 after purchasing an additional 57,807 shares during the period. Institutional investors and hedge funds own 75.24% of the company’s stock.
American Electric Power Stock Up 0.7% Shares of NASDAQ AEP opened at $126.53 on Tuesday. The stock has a market cap of $68.88 billion, a P/E ratio of 21.70, a PEG ratio of 2.25 and a beta of 0.52. The business’s fifty day simple moving average is $131.31 and its 200-day simple moving average is $130.41. American Electric Power Company, Inc. has a 12-month low of $105.70 and a 12-month high of $140.58. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44.
American Electric Power (NASDAQ:AEP – Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.12). American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the firm earned $1.43 earnings per share. The company’s revenue for the quarter was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. As a group, equities analysts predict that American Electric Power Company, Inc. will post 6.37 EPS for the current fiscal year. American Electric Power Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a dividend of $0.95 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.0%. American Electric Power’s payout ratio is currently 65.18%.
Analyst Ratings Changes AEP has been the topic of a number of research reports. Truist Financial decreased their price target on American Electric Power from $146.00 to $139.00 and set a “buy” rating on the stock in a research note on Monday. Seaport Research Partners upgraded American Electric Power from a “neutral” rating to a “buy” rating and set a $145.00 price objective on the stock in a report on Monday, April 20th. Jefferies Financial Group increased their target price on American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. BMO Capital Markets dropped their target price on American Electric Power from $141.00 to $139.00 and set a “market perform” rating for the company in a research report on Wednesday, July 22nd. Finally, Barclays cut their price target on shares of American Electric Power from $138.00 to $129.00 and set an “equal weight” rating on the stock in a research note on Monday, August 3rd. Thirteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $140.38.
Read Our Latest Stock Analysis on AEP
(Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
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, a regulated utility and electricity-transmission operator, traded almost flat at $125.46 Monday morning as the AI infrastructure race pushed deeper into the power sector. NVIDIA
NVDA +0.44% 95
agreed to backstop up to $105 billion of financing obligations tied to OpenAI's massive Ohio data center project while investing $1.5 billion in SB Energy, the SoftBank-backed developer behind the campus.
The big winner from the AI boom may not just be chipmakers. Utilities are becoming the backbone of the next growth cycle. AEP Ohio is positioned to supply electricity for the Pike County project, which could eventually require 4.25 gigawatts of initial capacity with expansion options beyond that. The company is also supporting a $4.2 billion transmission upgrade program, while SB Energy has committed to covering those infrastructure costs instead of shifting the burden onto existing customers.
The valuation story remains more balanced. AEP traded at $125.41 versus its GF Value™ of $114.89, placing the stock approximately 9.16% above its estimated intrinsic value. Investors are clearly giving AEP credit for its role in powering the AI expansion, but the earnings impact is still a future event. Electricity is not expected to begin flowing to the site until 2029, meaning regulatory approvals, construction execution and demand growth will determine whether this becomes a major earnings catalyst or simply a long-term infrastructure bet.
The AI race needs more than GPUs. It needs power, transmission lines and companies capable of delivering electricity at massive scale. AEP is now sitting directly in the middle of that opportunity.
Carl Icahn‘s latest portfolio update is notable less for what he bought than for what he didn’t. The billionaire activist investor made no new stock purchases during the second quarter, instead trimming positions in JetBlue Airways Corporation (NASDAQ:JBLU) and American Electric Power Company, Inc. (NASDAQ:AEP) while leaving the rest of his concentrated portfolio largely intact, suggesting a quarter focused on selective risk reduction rather than fresh activist bets.
Carl Icahn’s 13F Shows Selective Trims Instead of New PositionsAccording to Icahn’s latest Form 13F, the number of disclosed holdings remained unchanged at 12 between the first and second quarters. His biggest reduction came in American Electric Power, where he cut his stake by roughly 770,600 shares, reducing the position by about 64%.
Icahn also pared his holding in JetBlue Airways, selling nearly 13 million shares, or about 39% of the position. The airline remains one of the larger holdings in the portfolio, but the reduction marked one of only two meaningful changes during the quarter. Meanwhile, Icahn left his stakes in companies including CVR Energy Inc. (NYSE:CVI), CVR Partners, LP (NYSE:UAN), International Flavors & Fragrances, Inc. (NYSE:IFF), Caesars Entertainment, Inc. (NASDAQ:CZR) and Bausch + Lomb Corp (NYSE:BLCO) unchanged.
It’s worth noting that 13F filings are a snapshot of holdings as of June 30, 2026, and don’t reflect any portfolio changes Carl Icahn may have made after the quarter ended.
Read Next
The Bigger Story in Carl Icahn’s Portfolio Is What Didn’t ChangeFor an investor known for bold activist campaigns and high-conviction investments, the absence of new positions may be the filing’s most revealing takeaway.
Rather than deploying capital into new opportunities, Icahn made only incremental adjustments. While a 13F filing doesn’t reveal the reasoning behind investment decisions or capture positions outside U.S.-listed equities, the filing shows no evidence of the billionaire launching a new activist campaign or building stakes in sectors that have dominated market attention this year, such as artificial intelligence.
That measured approach also reinforces just how concentrated Icahn’s public equity portfolio remains. His largest positions—including Icahn Enterprises L.P. (NASDAQ:IEP), CVR Energy and CVR Partners—continue to account for the overwhelming majority of disclosed assets, with only modest reallocations elsewhere.
What Investors Should Watch NextIcahn’s portfolio changes rarely tell the full story, but they often provide clues about where the activist investor is directing his attention. This quarter’s filing points to portfolio maintenance rather than conviction-driven repositioning.
Investors should now watch whether future regulatory filings reveal new activist stakes or whether Icahn continues refining existing holdings instead of putting fresh capital to work as market valuations remain elevated.
Bellars Harris Wealth Management LLC acquired a new stake in shares of American Electric Power Company, Inc. (NASDAQ:AEP – Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 75,847 shares of the company’s stock, valued at approximately $10,377,000. American Electric Power comprises 2.1% of Bellars Harris Wealth Management LLC’s portfolio, making the stock its 8th largest holding.
Several other hedge funds and other institutional investors have also made changes to their positions in AEP. Brighton Jones LLC lifted its stake in shares of American Electric Power by 11.5% during the 4th quarter. Brighton Jones LLC now owns 10,601 shares of the company’s stock worth $978,000 after acquiring an additional 1,095 shares during the last quarter. Acadian Asset Management LLC bought a new position in American Electric Power in the 1st quarter valued at $320,000. Sivia Capital Partners LLC grew its position in American Electric Power by 149.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 4,891 shares of the company’s stock valued at $507,000 after acquiring an additional 2,931 shares during the last quarter. Gamco Investors INC. ET AL increased its stake in American Electric Power by 4.4% in the second quarter. Gamco Investors INC. ET AL now owns 2,505 shares of the company’s stock worth $260,000 after purchasing an additional 105 shares during the period. Finally, AXA S.A. increased its stake in American Electric Power by 95.7% in the second quarter. AXA S.A. now owns 79,111 shares of the company’s stock worth $8,209,000 after purchasing an additional 38,684 shares during the period. Hedge funds and other institutional investors own 75.24% of the company’s stock.
American Electric Power Trading Up 0.2% NASDAQ:AEP opened at $125.60 on Friday. The stock has a market capitalization of $68.38 billion, a price-to-earnings ratio of 21.54, a PEG ratio of 2.25 and a beta of 0.52. American Electric Power Company, Inc. has a 52 week low of $105.70 and a 52 week high of $140.58. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44. The firm has a 50 day moving average of $131.31 and a 200 day moving average of $130.27.
American Electric Power (NASDAQ:AEP – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.12). The firm had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.34 billion. American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.American Electric Power’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.43 earnings per share. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. As a group, sell-side analysts anticipate that American Electric Power Company, Inc. will post 6.37 earnings per share for the current fiscal year.
American Electric Power Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a dividend of $0.95 per share. This represents a $3.80 annualized dividend and a yield of 3.0%. The ex-dividend date is Monday, August 10th. American Electric Power’s payout ratio is 65.18%.
Analysts Set New Price Targets A number of analysts have recently issued reports on the stock. JPMorgan Chase & Co. lowered their target price on shares of American Electric Power from $141.00 to $140.00 and set a “neutral” rating for the company in a research note on Friday, May 15th. Truist Financial lifted their price objective on shares of American Electric Power from $145.00 to $146.00 and gave the company a “buy” rating in a report on Friday, July 17th. Jefferies Financial Group upped their target price on shares of American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Mizuho reduced their target price on shares of American Electric Power from $141.00 to $135.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. Finally, Wall Street Zen lowered shares of American Electric Power from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Thirteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $140.71.
View Our Latest Research Report on American Electric Power
American Electric Power Profile (Free Report)
American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.
Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.
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Three well-known dividend payers share a single deadline this week. SiriusXM (NASDAQ:SIRI | SIRI Price Prediction), American Electric Power (NASDAQ:AEP), and Timberland Bancorp (NASDAQ:TSBK) all go ex-dividend on Monday, August 10. To collect the upcoming payment on any of them, shares must be owned by the close of Friday, August 7.
Here’s what you need to know to collect the distributions. To receive a dividend, you must hold shares before the ex-dividend date. Buy on August 7 or earlier and you’re eligible; buy on August 10 or after and the seller keeps that payout.
Don’t assume that this is “free money.” On the ex-date, the stock typically opens lower by roughly the dividend amount, so this is really about eligibility for the cash. Still, there are some intriguing income opportunities here, so feel free to check out these three dividend stocks today.
SiriusXM (SIRI) SiriusXM stock pays a quarterly dividend of $0.27, or $1.08 annualized, for a yield of 3.56%. The ex-date is August 10, so shares must be bought by August 7 to qualify for the August 26 payment. SiriusXM’s trailing EPS of $2.49 comfortably covers the $1.08 payout, and the trailing P/E ratio is 12.35x, so on an earnings basis the dividend looks well-supported.
The caveat is the business itself. SiriusXM has been working through subscriber pressure in its core satellite service and carries meaningful long-term debt of $9.45 billion, though free cash flow has been climbing and management raised full-year guidance after Q2. SiriusXM stock is up 49% over the past year, so the payout is covered on earnings, though the story remains a turnaround in progress.
American Electric Power (AEP) American Electric Power stock offers a quarterly dividend of $0.95, recently lifted from $0.93, for an annualized $3.80 and a yield of 2.95%. The ex-date is August 10, so the buy-by date is August 7, and this one pays on September 10, not in August. AEP’s trailing EPS is $5.77 against a $3.80 payout, and the trailing P/E ratio sits at 22.24x. That payout ratio is elevated but normal for a regulated electric utility funding a large capital plan.
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American Electric Power serves more than five million customers in 11 states and management reaffirmed a 7% to 9% annual earnings growth target through 2030 alongside a $78 billion five-year capital plan. The company’s commercial load rose 14.9% in its Vertically Integrated segment, reflecting the data-center and hyperscaler electricity demand tailwind that has become the utility sector’s biggest growth story. AEP stock trades at $126.18, below the analyst target of $145.10.
Timberland Bancorp (TSBK) Timberland Bancorp stock pays a quarterly dividend of $0.30, just raised from $0.29, with a yield of 2.46%. The ex-date is August 10, so shares must be held before that morning (buy by August 7) to receive the August 24 payment. Timberland’s trailing EPS of $4.05 against an annualized $1.12 payout leaves a wide cushion, and the trailing P/E ratio is 11.13x. Furthermore, coverage on an EPS basis is clean for Timberland Bancorp.
To sum it up, Timberland Bancorp is a Washington State community bank based in Hoquiam, and this marks its 55th consecutive quarterly dividend. The company’s most recent quarter showed a net interest margin of 3.85%, efficiency ratio of 53.4%, and deposits up 6% year over year, though non-performing assets ticked up to 0.43% of total assets. Timberland Bancorp stock has climbed 48% over the past year, so the yield looks modest partly because the price has run.
The Bottom Line All three names share the same August 10 ex-date, which means shares must be owned by the close of Friday, August 7. SiriusXM pays August 26, Timberland Bancorp pays August 24, and American Electric Power pays September 10, so the payment calendars differ even though the deadline does not.
Chasing a single dividend isn’t a viable investment strategy, and the ex-date drop tends to offset the distribution in the short run. What matters is whether the payout is covered by earnings, and on that front, all three of these companies screen as comfortable today. Miss the August 7 buy-by window on any of them, though, and you’re waiting for the next cycle.
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American Electric Power remains a buy, driven by 69 GW of contracted load and a $78B capital plan supporting robust rate-base growth. Management raised FY2026 operating EPS guidance to $6.25–$6.55, reaffirming 7%-9% annual growth and targeting >9% CAGR through 2030. Contracted demand, especially from data centers, is increasingly formalized with strong regulatory and collateral protections, minimizing counterparty risk.
American Electric Power missed Q2 EPS estimates, but I do not think it impacts the overall investment thesis and the growth story for the next 5 years. AEP's forward guidance reflects confidence in continued demand and operational stability. The stable dividends and predictable cash flows remain attractive, but the valuation indicates a significant growth premium.
Key Takeaways AEP added 6 gigawatts of contracted load in Q2, lifting additions through 2030 to 69 gigawatts.AEP reaffirmed its $78 billion capital plan for 2026-2030, targeting nearly 11% rate base growth.AEP secured 3 gigawatts of gas-fired turbine capacity, bringing total secured capacity to 13 gigawatts. American Electric Power Company, Inc. (AEP - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating customer demand, a larger investment pipeline and steps to support long-term infrastructure growth. Management raised its full-year outlook while highlighting expanded contracted load opportunities and generation planning.
The call focused less on quarterly earnings pressure and more on how AEP is positioning its transmission, generation and regulatory platforms for sustained expansion. Executives also addressed investor questions around capital deployment, financing and emerging customer demand.
AEP Expands Demand OutlookAEP reported earnings of $1.36 per share for the second quarter of 2026, below the Zacks Consensus Estimate of $1.49. Revenues reached $5.45 billion, ahead of the Zacks Consensus Estimate of $5.26 billion.
Chief executive officer William Fehrman said the company added 6 gigawatts of contracted load during the quarter, bringing total contracted load additions through 2030 to 69 gigawatts. The company attributed much of the increase to fully executed agreements in Texas.
Fehrman emphasized that large-load customers, including hyperscalers and industrial users, are central to AEP’s growth strategy. Management said these agreements are structured to provide customer commitments while helping spread fixed costs across a broader base.
American Electric Power Advances Capital PlanAmerican Electric Power reaffirmed its $78 billion capital plan for 2026 through 2030, which management expects to support nearly 11% rate base compound annual growth. The company also identified more than $10 billion of potential incremental investments beyond the base plan.
Chief financial officer Trevor Mihalik said AEP expects operating earnings growth of 7% to 9% annually through 2030 and operating EPS CAGR of more than 9%, supported by infrastructure investments and regulatory improvements.
Management highlighted potential additions from the Wyoming fuel cell project, the Piketon transmission opportunity and incremental generation investments. Executives said these projects could expand the company’s long-term investment runway.
AEP Secures Generation CapacityAEP said it secured an additional 3 gigawatts of gas-fired turbine capacity during the quarter, increasing total secured turbine capacity to approximately 13 gigawatts for deployment through 2031. The company is also evaluating up to 10 gigawatts of additional turbine capacity through 2035.
Fehrman said securing equipment early provides flexibility as demand increases and generation resources become more constrained. Management noted that the turbine strategy is intended to support customer growth and replace aging generation assets over time.
The company also discussed early-stage nuclear opportunities. Fehrman said AEP remains disciplined on capital allocation and would require strong protections, financial safeguards and regulatory support before advancing such projects.
American Electric Power Faces Investor QuestionsAmerican Electric Power faced analyst questions about whether growth opportunities could require new financing structures. A Wells Fargo analyst asked about alternative approaches for serving hyperscale customers, including potential generation company structures.
Fehrman said AEP is evaluating the GenCo structure because it could provide advantages in serving large customers. He also highlighted opportunities in West Virginia, where the company is pursuing projects aligned with regional economic development goals.
A Jefferies analyst questioned how AEP views new nuclear development and customer-specific generation structures. Management reiterated that any approach would prioritize balance sheet protection and disciplined investment decisions.
AEP Maintains Financial DisciplineAEP raised its 2026 operating earnings guidance to $6.25 to $6.55 per share from the prior range of $6.15 to $6.45 per share. Management cited strong first-half performance and expected regulatory benefits in the second half of the year.
The company also completed a $3 billion marketed equity transaction intended to support the current capital plan. Management said the transaction addressed anticipated equity needs associated with the $78 billion investment program.
Executives highlighted customer affordability efforts, including up to $16 billion in expected cost offsets from new large-load agreements and nearly $1.4 billion in estimated customer benefits from DOE loans and grants.
AEP Focuses on Long-Term ExecutionAEP ended the call by emphasizing execution across financial performance, affordability, growth and regulatory outcomes. Management pointed to customer demand, infrastructure investment and regulatory progress as key priorities.
The company said it continues to pursue growth while maintaining investment-grade credit metrics, including a targeted FFO-to-debt ratio of 14% to 15%.
Management’s outlook centered on expanding infrastructure capacity, supporting new customer demand and advancing projects that could extend growth beyond the current five-year plan.
Zacks Signals for AEPAEP carries a Zacks Rank #3 (Hold). The Zacks Rank focuses on earnings estimate revisions and is designed to help identify stocks with potential relative performance over the next one to three months. The Rank can change as analysts update earnings expectations following quarterly results.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of C, Growth Score of D, Momentum Score of A and VGM Score of C. Zacks Style Scores rate stocks from A to F, with stronger scores indicating more favorable characteristics within each investment style category.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AEP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways American Electric's Q2 operating earnings fell 4.9% to $1.36 per share, missing estimates by 8.7%.Revenues rose 7% to $5.45 billion, supported by utility rate changes and higher transmission revenues.American Electric raised 2026 operating EPS guidance to $6.25-$6.55 from $6.15-$6.45. American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2026 operating earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.49 by 8.7%. The bottom line declined 4.9% from $1.43 in the year-ago quarter, primarily due to the timing of income taxes and the prior-year transmission minority-interest transaction.
On a GAAP basis, AEP posted earnings of $1.31 per share, down from $2.29 a year ago.
American Electric Total RevenuesAEP generated total revenues of $5.45 billion, up 7% from $5.09 billion in the prior-year quarter. The top line also came ahead of the Zacks Consensus Estimate of $5.26 billion by 3.5%.
AEP’s Segmental PerformanceVertically Integrated Utilities segment generated operating earnings of $302 million, up from $297 million. Rate changes contributed 21 cents per share, while normalized sales added 10 cents.
Transmission & Distribution Utilities reported operating earnings of $239 million, up from $224 million in the year-ago period. Rate changes and higher transmission revenues supported the improvement.
AEP Transmission Holdco’s operating earnings were $225 million, nearly unchanged from $224 million a year earlier. However, the segment’s earnings contribution was affected by the timing of the minority-interest transaction completed in 2025.
Generation & Marketing operating earnings declined slightly to $91 million from $92 million in the year-ago quarter. Retail-related weakness was offset by gains from wholesale and other activities, while operations and maintenance costs created a modest drag.
Corporate and Other posted an operating loss of $115 million, wider than the $71 million loss recorded a year earlier. Higher operating costs, interest expense, income-tax timing and other corporate items reduced quarterly operating earnings and offset gains across several utility businesses.
AEP’s 2026 GuidanceAEP raised its 2026 operating earnings guidance range to $6.25-$6.55 per share from $6.15-$6.45. The Zacks Consensus Estimate for earnings is pegged at $6.35, which lies below the midpoint of the company’s projected range.
AEP’s Zacks RankAmerican Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility ReleasesEntergy Corporation (ETR - Free Report) reported second-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 94 cents by 9.6%. However, the bottom line decreased 1.9% from the year-ago quarter’s figure of $1.05.
Revenues rose 5.9% year over year to $3.52 billion but missed the consensus mark of $3.53 billion by 0.08%.
PG&E Corporation (PCG - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of 40 cents, which beat the Zacks Consensus Estimate of 37 cents by 8.1%. The bottom line also increased 29% from the year-ago quarter’s figure of 31 cents.
PCG reported second-quarter total revenues of $5.902 billion, up 0.1% from $5.898 billion registered in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $6.31 billion by 6.4%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2026 adjusted EPS of 37 cents, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 47.9% from 71 cents in the year-ago quarter.
Operating revenues totaled $1.83 billion, which missed the Zacks Consensus Estimate of $1.91 billion by 4.2%. The top line also fell 0.5% from $1.84 billion in the prior-year quarter.
American Electric Power Company, Inc. (AEP) Q2 2026 Earnings Call July 30, 2026 9:00 AM EDT
Company Participants
Andy Gurgol
William Fehrman - Chairman, President & CEO
Trevor Mihalik - Executive VP & CFO
Kate Sturgess - Senior VP, Controller & Chief Accounting Officer
Conference Call Participants
Shahriar Pourreza - Wells Fargo Securities, LLC, Research Division
Steven Fleishman - Wolfe Research, LLC
Julien Dumoulin-Smith - Jefferies LLC, Research Division
Richard Sunderland - Truist Securities, Inc., Research Division
David Arcaro - Morgan Stanley, Research Division
Aidan Kelly - JPMorgan Chase & Co, Research Division
Michael Lonegan - Barclays Bank PLC, Research Division
Presentation
Operator
Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Electric Power Second Quarter 2026 Earnings Call. [Operator Instructions] Thank you.
I would now like to turn the call over to Andy Gurgol, Vice President of Investor Relations. You may go ahead.
Andy Gurgol
Good morning, and welcome to American Electric Power's Second Quarter 2026 Earnings Call. A live webcast of this teleconference and slide presentation are available on our website under the Events & Presentations section.
Joining me today are Bill Fehrman, Chairman, President and Chief Executive Officer; and Trevor Mihalik, Chief Financial Officer. In addition, we have other members of our management team in the room, including Kate Dixon, Senior Vice President, Controller and Chief Accounting Officer; and Darcy Reese, Vice President, Investor Relations.
We will be making forward-looking statements during the call. Actual results may differ materially from those projected in any forward-looking statements we make today. Factors that could cause our actual results to differ materially are discussed in the company's most recent SEC filings. Please refer to the presentation slides that accompany this call for a reconciliation to GAAP measures. We
American Electric Power (AEP - Free Report) came out with quarterly earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -8.73%. A quarter ago, it was expected that this utility would post earnings of $1.55 per share when it actually produced earnings of $1.64, delivering a surprise of +5.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
AEP, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $5.45 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.48%. This compares to year-ago revenues of $5.09 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AEP shares have added about 12.2% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for AEP?While AEP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AEP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.98 on $6.33 billion in revenues for the coming quarter and $6.35 on $23.35 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Fortis (FTS - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 31.
This electric and gas utility is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.
Fortis' revenues are expected to be $2.02 billion, down 0.5% from the year-ago quarter.
