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American Electric Power Co Inc
🇺🇸 AEP · NYSE/NASDAQ · US0255371017
Utilities
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.
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.
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
12.9x
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: 3.01%
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): 3.01%
Payout Ratio (Fwd)
63.4% TTM
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)
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 |
| Declared | 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. With its yield now back above the 3.0% mark, exceptional cash flow coverage, and shares dipping into technically oversold territory, the stock presents an attractive entry point. It is well worth considering for new positions by conservative DGI investors.
Sector Context
American Electric Power operates in the Regulated Electric Utility sector. For DGI investors, this sector provides bond-like, monopolistic cash flows ideal for consistent dividend growth. Higher debt loads (like AEP's 6.15x ND/EBITDA) are standard and acceptable given the regulated return on equity, though regulatory relations and infrastructure cap-ex management are vital.
Temporary Opportunity Identified
Shares recently entered oversold territory (RSI <30) due to short-term pressures from a massive $2.6B equity offering to fund infrastructure and temporary macroeconomic rate fears, masking the long-term cash flow certainty of contracted data center load growth.
📊 Strategy Analysis
- • Dividend yield has crossed the 3.0% threshold (3.01% TTM / 3.03% Forward), resolving previous yield-minimum concerns.
- • Exceptional dividend safety with a Cash Flow Payout of only 26.87% and Free Cash Flow covering the dividend 4.38x over.
- • Trades at a highly attractive P/FFO of 10.34x (well below the $145-$218 fair value range), offsetting the higher traditional P/E of 21.57x.
- • Massive structural growth tailwind from AI and data center load additions, driving an 8-year consecutive dividend growth streak (5.8% CAGR).
⚠ What to Watch
- • Net Debt/EBITDA is elevated at 6.15x, reflecting heavy capital requirements that recently necessitated a dilutive $2.6 billion forward stock offering.
- • Carries significant structural exposure to $1.31 billion in Asset Retirement Obligations (AROs) for legacy coal ash remediation.
- • Ongoing regulatory and operational friction from recent Texas Wildfire Mitigation Mandates (HB 145) and lingering ratepayer scrutiny from the Ohio HB6 settlement.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.