AEP vs NGG: Which Is the Better Dividend Stock?
As of Oct 28, 2026, AEP (American Electric Power Company, Inc.) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. NGG offers the higher yield at 3.96%, 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 NGG
Data as of · Source: SmarterDividends data
- As of Oct 28, 2026, National Grid plc (NGG) has the higher forward dividend yield at 3.96%, 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 NGG's C (51/100).
- By SmarterDividends' count as of Oct 28, 2026, AEP has raised its dividend for 16 consecutive years and NGG for 0.
- As of Oct 28, 2026, AEP pays out 66% of its earnings as dividends and NGG pays out 72%.
- As of Oct 28, 2026, AEP's fair-value estimate is 46% above its share price and NGG's fair-value estimate is 22% above its share price, so AEP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AEP vs NGG: Dividend Yield, Safety & Value Compared," updated Oct 28, 2026, https://smarterdividends.com/compare/aep-vs-ngg
| Metric | AEP | NGG |
|---|---|---|
| Forward yield | 3.00% | 3.96% |
| Annual dividend | $3.88 | $3.24 |
| Payout ratio | 66% | 72% |
| Years of growth | 16 yr | 0 yr |
| 5-yr dividend growth | 5.7% | -0.1% |
| 5-yr total return | 60% | 24% |
| Dividend safety score | 88 (A) | 51 (C) |
| Fair value estimate | $190.48 | $100.15 |
| Upside to fair value | +46% | +22% |
| Frequency | quarterly | semiannual |
| Market cap | $70.9B | $82.2B |
| P/E ratio | 22.6 | 18.6 |
Higher yield
NGG
3.96%
Safer dividend
AEP
Grade A
Faster growth
AEP
5.7%
Better value
AEP
+46% upside
AEP vs NGG — FAQ
Is AEP or NGG a better dividend stock?
On the data, AEP wins more head-to-head categories (7 vs 1). NGG offers the higher yield (3.96%), 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 NGG?
NGG has the higher forward dividend yield at 3.96%, versus 3.00% for AEP.
Is AEP or NGG safer?
AEP has the higher dividend-safety score (88/100 vs 51/100), reflecting stronger payout coverage and dividend-growth history.
Is AEP or NGG 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 NGG, its fair-value estimate is 22% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.