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American Electric Power Co Inc AEP

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Morningstar’s Analysis

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American Electric Power's Dividend Increase Highlights Management's Confidence in Growth Outlook

Andrew Bischof, CFA, CPA Senior Equity Analyst

Analyst Note

| Andrew Bischof, CFA, CPA |

We are reaffirming our $89 per share fair value estimate after American Electric Power increased its quarterly dividend to $0.78 per share, a 5.5% increase. The company's 2021 operating earnings guidance range of $4.55 to $4.75 and its long-term 5% to 7% growth rate are unchanged. Our expectations are for management to achieve the midpoint of this range. Our narrow moat and stable moat trend remain unchanged.

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Company Profile

Business Description

American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million retail customers in 11 states. About 43% of AEP's of capacity is coal, with the remainder from a mix of natural gas (29%), renewable energy and hydro (18%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.

1 Riverside Plaza
Columbus, OH, 43215-2373
T +1 614 716-1000
Sector Utilities
Industry Utilities - Regulated Electric
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type High Yield
Employees 16,787