AEP vs NEE: Which Is the Better Dividend Stock?
As of Oct 28, 2026, NEE (NextEra Energy, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. NEE offers the higher yield at 3.04%, NEE 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 NEE
Data as of · Source: SmarterDividends data
- As of Oct 28, 2026, NextEra Energy, Inc. (NEE) has the higher forward dividend yield at 3.04%, versus 3.00% for American Electric Power Company, Inc. (AEP).
- As of Oct 28, 2026, SmarterDividends grades AEP's dividend safety A (88/100) and NEE's A (90/100).
- By SmarterDividends' count as of Oct 28, 2026, AEP has raised its dividend for 16 consecutive years and NEE for 30.
- As of Oct 28, 2026, AEP pays out 66% of its earnings as dividends and NEE pays out 44%.
- As of Oct 28, 2026, AEP's fair-value estimate is 46% above its share price and NEE's fair-value estimate is 15% above its share price, so AEP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AEP vs NEE: Dividend Yield, Safety & Value Compared," updated Oct 28, 2026, https://smarterdividends.com/compare/aep-vs-nee
| Metric | AEP | NEE |
|---|---|---|
| Forward yield | 3.00% | 3.04% |
| Annual dividend | $3.88 | $2.49 |
| Payout ratio | 66% | 44% |
| Years of growth | 16 yr | 30 yr |
| 5-yr dividend growth | 5.7% | 10.1% |
| 5-yr total return | 60% | -5% |
| Dividend safety score | 88 (A) | 90 (A) |
| Fair value estimate | $190.48 | $94.84 |
| Upside to fair value | +46% | +15% |
| Frequency | quarterly | quarterly |
| Market cap | $70.9B | $172.9B |
| P/E ratio | 22.6 | 14.9 |
Higher yield
NEE
3.04%
Safer dividend
NEE
Grade A
Faster growth
NEE
10.1%
Better value
AEP
+46% upside
AEP vs NEE — FAQ
Is AEP or NEE a better dividend stock?
On the data, NEE wins more head-to-head categories (5 vs 3). NEE offers the higher yield (3.04%), while NEE 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 NEE?
NEE has the higher forward dividend yield at 3.04%, versus 3.00% for AEP.
Is AEP or NEE safer?
NEE has the higher dividend-safety score (90/100 vs 88/100), reflecting stronger payout coverage and dividend-growth history.
Is AEP or NEE 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 NEE, its fair-value estimate is 15% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.