American Electric Power Co Inc (AEP) Dividend Analysis
Comprehensive dividend yield, safety, growth, and income analysis for AEP.
American Electric Power Co Inc (AEP) pays a solid 3.03% dividend yield, or $3.80 per share annually at a stock price of $125.60. 16 consecutive years of dividend increases — qualifying as a Dividend Contender (10+ years). The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. Dividend growth is slowing — the 3-year CAGR of 4.6% trails the 5-year rate of 5.1% and the 10-year rate of 5.4%. The most recent ex-dividend date was August 10, 2026.
Dividend Overview
American Electric Power Co Inc (AEP) pays a solid 3.03% dividend yield, or $3.80 per share annually at a stock price of $125.60. AEP has increased its dividend for 16 consecutive years.
Dividend Safety
The payout ratio of 3% is well within sustainable levels, leaving room for future increases.
DRIP Projection
$10,000 invested in AEP with dividends reinvested would grow to approximately $14,556 after 10 years, generating roughly $726/year in dividend income. This projection assumes the current 3.03% yield and a 5.1% annual dividend growth rate with all dividends reinvested.
| Year | Portfolio Value | Annual Income | Total Return |
|---|---|---|---|
| Year 1 | $10,303 | $328 | +3% |
| Year 5 | $11,792 | $458 | +18% |
| Year 10 | $14,556 | $726 | +46% |
| Year 15 | $19,043 | $1,218 | +90% |
| Year 20 | $26,817 | $2,203 | +168% |
Assumes constant share price and reinvestment at current price. Actual results will vary. Try our DRIP Calculator for a customized projection with real historical data.
Payment Schedule
You must own shares before the ex-dividend date to receive the upcoming payment. Payment typically arrives 2-4 weeks after the ex-date.
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