AEP vs CEG: Which Is the Better Dividend Stock?
As of Oct 28, 2026, AEP (American Electric Power Company, Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. AEP offers the higher yield at 3.00%, AEP has the higher dividend-safety score, and AEP looks like the better value (its fair-value estimate is 46% above its share price).
Key facts: AEP vs CEG
Data as of · Source: SmarterDividends data
- As of Oct 28, 2026, American Electric Power Company, Inc. (AEP) has the higher forward dividend yield at 3.00%, versus 0.68% for Constellation Energy Corporation (CEG).
- As of Oct 28, 2026, SmarterDividends grades AEP's dividend safety A (88/100) and CEG's B (77/100).
- By SmarterDividends' count as of Oct 28, 2026, AEP has raised its dividend for 16 consecutive years and CEG for 3.
- As of Oct 28, 2026, AEP pays out 66% of its earnings as dividends and CEG pays out 16%.
- As of Oct 28, 2026, AEP's fair-value estimate is 46% above its share price and CEG's fair-value estimate is 3% above its share price, so AEP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AEP vs CEG: Dividend Yield, Safety & Value Compared," updated Oct 28, 2026, https://smarterdividends.com/compare/aep-vs-ceg
| Metric | AEP | CEG |
|---|---|---|
| Forward yield | 3.00% | 0.68% |
| Annual dividend | $3.88 | $1.71 |
| Payout ratio | 66% | 16% |
| Years of growth | 16 yr | 3 yr |
| 5-yr dividend growth | 5.7% | — |
| 5-yr total return | 60% | 428% |
| Dividend safety score | 88 (A) | 77 (B) |
| Fair value estimate | $190.48 | $267.26 |
| Upside to fair value | +46% | +3% |
| Frequency | quarterly | quarterly |
| Market cap | $70.9B | $91.8B |
| P/E ratio | 22.6 | 24.7 |
Higher yield
AEP
3.00%
Safer dividend
AEP
Grade A
Faster growth
AEP
5.7%
Better value
AEP
+46% upside
AEP vs CEG — FAQ
Is AEP or CEG a better dividend stock?
On the data, AEP wins more head-to-head categories (5 vs 2). AEP offers the higher yield (3.00%), while AEP has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, AEP or CEG?
AEP has the higher forward dividend yield at 3.00%, versus 0.68% for CEG.
Is AEP or CEG safer?
AEP has the higher dividend-safety score (88/100 vs 77/100), reflecting stronger payout coverage and dividend-growth history.
Is AEP or CEG better value right now?
As of Oct 28, 2026, AEP looks like the better value: its fair-value estimate is 46% above its share price (undervalued). For CEG, its fair-value estimate is 3% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.