American Electric Power (AEP) Stock

The market responded sharply to the launch of China's AI, DeepSeek, causing AI stocks to drop while REITs and utility stocks rose significantly. Investors are now favoring the reliable returns of REITs and regulated utilities, which promise 8%-10% returns, due to concerns about the future profitability of AI. The news about DeepSeek has made the consistent cash flows from REITs and utilities more appealing as the excitement around AI's rapid growth fades.

American Electric Power is a good investment option, providing a 3.8% dividend yield and a history of good returns for shareholders and strong financial management. The company aims for 6-8% annual growth in earnings per share starting in 2026, supported by a $54 billion investment plan and better operational efficiency. The new CEO is focused on enhancing the company's structure to boost performance and growth in regulated utilities and renewable energy.

COLUMBUS, Ohio, Jan. 21, 2025 /PRNewswire/ -- The Board of Directors at American Electric Power (Nasdaq: AEP) has announced a regular quarterly cash dividend of 93 cents per share for its common stock. This dividend will be paid on March 10, 2025, to shareholders who are on record as of February 10, 2025, marking the company's 459th consecutive quarterly cash dividend.

Indiana Michigan Power has recognized the Rockport Plant in Spencer County, Indiana, as a possible site for a Small Modular Reactor (SMR) after positive discussions with the community. Appalachian Power has also applied for a grant to assist with the permitting process at the Joshua Falls site. American Electric Power (AEP) is seeking funding from the U.S. Department of Energy to support the Early Site Permit process for these two potential SMR locations.

AEP has a strong track record of surprising with its earnings and currently has the right mix of factors that suggest it may exceed expectations in its upcoming quarterly report.

Ross Fowler, an analyst at BofA Securities, has changed his rating for American Electric Power Company Inc (AEP) from Underperform to Buy. He also increased the price target for the shares from $98 to $104.

KKR and PSP Investments have formed a 50/50 partnership to buy a 19.9% non-controlling stake in two AEP Transcos for $2.82 billion. This deal will provide efficient financing to help AEP with its $54 billion capital investment plan over the next five years, improving reliability for customers and strengthening its financial position. The Transcos are regulated utilities that focus solely on building and operating transmission infrastructure.

The S&P 500 saw an impressive increase of 53.2% between 2023 and 2024. The passive income earned from most dividend stocks during this time is much lower than the capital gains from the overall market.

COLUMBUS, Ohio, Jan. 7, 2025 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has appointed Trevor I. Mihalik as the new executive vice president and chief financial officer, starting on January 20.