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American Electric Power Co Inc
🇺🇸 AEP · NYSE/NASDAQ
Utilities
Price at analysis: USD 125.72 Current price: USD 125.21 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
21.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 125.72 ÷ 5.82 = 21.6
TTM period through: 2026-06-30
Forward P/E (estimated): 17.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 21.5
Net Debt/EBITDA (TTM)
6.2x
Latest quarter: 23.4x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-06-30
Latest quarter (2026-06-30): 23.4x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
10.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
12.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.98%
TTM: 3.00%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.98%
Trailing Yield (TTM, last 12 months): 3.00%
Payout Ratio (Fwd)
65.3%
TTM: 65.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 65.3%
Payout (TTM): 65.2%
Cash Flow Payout (TTM): 26.9%
FCF Coverage (TTM): 4.38x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
5.7%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 10 Aug 2027 | — | USD | 0.95 |
| Forecast* | Quarterly | — | 08 May 2027 | — | USD | 0.95 |
| Forecast* | Quarterly | — | 10 Feb 2027 | — | USD | 0.95 |
| Forecast* | Quarterly | — | 10 Nov 2026 | — | USD | 0.95 |
| Paid | Quarterly | 20 Jul 2026 | 10 Aug 2026 | 10 Sep 2026 | USD | 0.95 |
| Paid | Quarterly | 28 Apr 2026 | 08 May 2026 | 10 Jun 2026 | USD | 0.95 |
| Paid | Quarterly | 20 Jan 2026 | 10 Feb 2026 | 10 Mar 2026 | USD | 0.95 |
| Paid | Quarterly | 22 Oct 2025 | 10 Nov 2025 | 10 Dec 2025 | USD | 0.95 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
American Electric Power is a premier regulated utility benefiting from a durable natural monopoly and massive long-term load growth from data center electrification. While the underlying business quality is excellent and recent legal overhangs have been successfully resolved, the current valuation of 21.61x P/E is too stretched to offer an attractive entry point. Existing holders should maintain their positions, but new investors should wait for a market dip to secure a higher starting yield.
Sector Context
American Electric Power is a massive regulated electric utility operating the nation's largest transmission network. For a DGI strategy, it is a textbook essential-service holding, providing highly predictable, regulated cash flows that support steady dividend growth, though its inherent capital intensity limits rapid dividend hikes.
Temporary Opportunity Identified
Historical legal and regulatory overhangs (such as the SEC lobbying investigation) have recently been settled, but the market has already priced in these favorable resolutions.
📊 Strategy Analysis
- • Strong essential monopoly position in regulated utilities, uniquely positioned to benefit from long-term AI data center power demand.
- • Excellent dividend safety with Free Cash Flow covering the dividend 4.38x and a sustainable TTM payout ratio of 63.4%.
- • Favorable resolution of major overhangs, including the $19 million settlement of the SEC Ohio lobbying investigation and administrative stays on EPA emissions rules.
- • Solid 8-year consecutive dividend growth streak with a healthy 5.8% long-term CAGR.
⚠ What to Watch
- • Valuation is stretched with a trailing P/E of 21.61x, which suppresses the dividend yield to a modest 3.00%.
- • Elevated leverage at 6.15x Net Debt/EBITDA, driven by the massive capital intensity required for grid expansion.
- • Ongoing structural exposure to long-term federal coal ash remediation liabilities and regulatory pushback on transmission ROE incentive adders.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.