AEP vs SO: 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 8 head-to-head metrics. SO offers the higher yield at 3.28%, SO 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 SO
Data as of · Source: SmarterDividends data
- As of Oct 28, 2026, The Southern Company (SO) has the higher forward dividend yield at 3.28%, 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 SO's A (90/100).
- By SmarterDividends' count as of Oct 28, 2026, AEP has raised its dividend for 16 consecutive years and SO for 25.
- As of Oct 28, 2026, AEP pays out 66% of its earnings as dividends and SO pays out 72%.
- As of Oct 28, 2026, AEP's fair-value estimate is 46% above its share price and SO's fair-value estimate is 1% below its share price, so AEP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AEP vs SO: Dividend Yield, Safety & Value Compared," updated Oct 28, 2026, https://smarterdividends.com/compare/aep-vs-so
| Metric | AEP | SO |
|---|---|---|
| Forward yield | 3.00% | 3.28% |
| Annual dividend | $3.88 | $3.04 |
| Payout ratio | 66% | 72% |
| Years of growth | 16 yr | 25 yr |
| 5-yr dividend growth | 5.7% | 3.0% |
| 5-yr total return | 60% | 52% |
| Dividend safety score | 88 (A) | 90 (A) |
| Fair value estimate | $190.48 | $91.60 |
| Upside to fair value | +46% | -1% |
| Frequency | quarterly | quarterly |
| Market cap | $70.9B | $106.6B |
| P/E ratio | 22.6 | 22.3 |
Higher yield
SO
3.28%
Safer dividend
SO
Grade A
Faster growth
AEP
5.7%
Better value
AEP
+46% upside
AEP vs SO — FAQ
Is AEP or SO a better dividend stock?
On the data, AEP wins more head-to-head categories (5 vs 3). SO offers the higher yield (3.28%), while SO 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 SO?
SO has the higher forward dividend yield at 3.28%, versus 3.00% for AEP.
Is AEP or SO safer?
SO has the higher dividend-safety score (90/100 vs 88/100), reflecting stronger payout coverage and dividend-growth history.
Is AEP or SO 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 SO, its fair-value estimate is 1% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.