SmarterDividends
AEP

American Electric Power Company, Inc.

AEP

Utilities · Utilities - Regulated Electric · Stock · quarterly payer

$122.08

Undervalued · +59% Add to Portfolio

Forward Yield

3.11%

Annual Dividend

$3.80

Payout Ratio

66%

5-Yr Growth

5.7%

Ex-Date

Aug 10, 2026

Frequency

Quarterly

Key facts about AEP's dividend

Data as of · Source: SmarterDividends data

  • As of Oct 8, 2026, American Electric Power Company, Inc. (AEP) has a forward dividend yield of 3.11%, based on an annual dividend of $3.80 per share and a share price of $122.08.
  • As of Oct 8, 2026, AEP's dividend safety grade from SmarterDividends is A (88 out of 100), which rates the dividend as very safe.
  • By SmarterDividends' count, American Electric Power Company, Inc. (AEP) has raised its dividend for 16 consecutive years as of Oct 8, 2026.
  • AEP last cut its regular dividend in 2003.
  • AEP's most recent ex-dividend date was Aug 10, 2026, for a dividend of $0.95 per share.
  • As of Oct 8, 2026, AEP pays out 66% of its trailing 12-month earnings as dividends (its payout ratio).
  • AEP's dividend has grown at an average rate of 5.7% a year over the past five years.
  • As of Oct 8, 2026, AEP's 3.11% yield is 14% below its five-year average yield of 3.63%.
  • As of Oct 8, 2026, SmarterDividends' blended fair-value estimate for AEP is $194.10 per share, 59% above the $122.08 share price, so AEP screens as undervalued.
  • American Electric Power Company, Inc. (AEP) pays its dividend quarterly, 4 times a year.
Cite this page

SmarterDividends, "AEP Dividend: Yield, Safety Grade & Next Ex-Date," updated Oct 8, 2026, https://smarterdividends.com/stocks/AEP

Summary

As of Oct 8, 2026, American Electric Power Company, Inc. (AEP) yields 3.11% ($3.80 a year per share), has a dividend safety grade of A (88/100) and has 16 consecutive years of dividend increases on record.

Is AEP a good dividend stock?

Yes

American Electric Power Company, Inc. (AEP) pays a quarterly dividend yielding 3.11% ($3.80/yr), with 16 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.

Advantages

  • 16 consecutive years of dividend growth
  • Strong 5.7% 5-yr dividend growth
  • 41% total price return over 5 years
  • Top-tier dividend safety score

Risks

  • Cut its dividend in 2003

Key Data

Dividend Yield
3.11%
Payout Ratio
66%
Annual Dividend
$3.80
5-Yr Avg Growth
5.7%
Ex-Dividend Date
Aug 10, 2026
Years of Growth
16
Frequency
quarterly
Beta
0.47
Market Cap
$66.5B
P/E Ratio
21.2
5-Yr Total Return
41%
52-Week Range
$112.54 – $140.58
Dividend Safety
A · 88/100
Ever Cut?
Yes (2003)
AEP ex-dividend date & scheduleNext ex-date Aug 10, 2026 · full ex-dividend historyView →AEP dividend historyEvery payment, totals by year, raises and cutsView →

Frequently Asked Questions

Is AEP a good dividend stock?

Yes. American Electric Power Company, Inc. (AEP) pays a quarterly dividend yielding 3.11% ($3.80/yr), with 16 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.

Is AEP undervalued?

Based on a blend of discounted cash flow, a dividend-discount model and an earnings-multiple estimate, AEP's fair value is about $194.10 versus a $122.08 share price — so it looks undervalued (+59% vs. fair value).

Is AEP's dividend safe?

AEP has a dividend-safety grade of A (88/100), based on its payout coverage, free-cash-flow, 16-year growth streak, a dividend cut in 2003, debt and yield-versus-history.

What is AEP's fair value?

Our blended fair-value estimate for AEP is about $194.10 per share, roughly 59% above the current $122.08 price — combining a discounted cash flow, a dividend-discount model and an earnings multiple.

Is AEP a buy, hold, or sell?

We don't issue formal ratings, but on the data AEP screens as "yes" and undervalued. American Electric Power Company, Inc. (AEP) pays a quarterly dividend yielding 3.11% ($3.80/yr), with 16 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding. This is research for your own analysis, not investment advice.

Will AEP cut its dividend?

AEP earns a dividend-safety grade of A (88/100), and has cut its dividend before (last in 2003). A higher score means lower cut risk based on payout coverage, cash flow and history — but no score guarantees a dividend.

Does AEP pay a dividend?

Yes. American Electric Power Company, Inc. pays a quarterly dividend of about $3.80 per share annually, a forward yield of roughly 3.11%.

What is AEP's dividend yield?

As of Oct 8, 2026, AEP's forward dividend yield is 3.11%, based on a $3.80 annual dividend and a $122.08 share price.

What is AEP's dividend per share?

As of Oct 8, 2026, AEP pays $3.80 per share per year, distributed on a quarterly basis.

What is AEP's dividend payout ratio?

As of Oct 8, 2026, AEP's payout ratio is 66% of trailing 12-month earnings — a moderate level that's generally sustainable.

How many years has AEP grown its dividend?

As of Oct 8, 2026, AEP has increased its dividend for 16 consecutive years.

When is the next AEP ex-dividend date?

As of Oct 8, 2026, AEP's next ex-dividend date hasn't been announced. The most recent was Aug 10, 2026, for $0.95 per share.

Income Calculator

At $3.80 / yr per share

Per payment (quarterly)$95.00
Annual$380.00
Monthly avg$31.67

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