American Electric Power Announces 93 Cent Dividend Per Share

American Electric Power's Board of Directors declared a regular quarterly cash dividend of 93 cents per share on its common stock. The dividend is payable on September 10, 2025, to shareholders recorded on August 8, 2025.

American Electric Power (AEP) has announced a regular quarterly cash dividend of 93 cents per share on its common stock. The dividend, payable on September 10, 2025, will be distributed to shareholders of record as of August 8, 2025 [1].

This marks AEP's 461st consecutive quarterly common stock cash dividend, underscoring the company's long-standing commitment to dividend payments. The dividend represents a 3.43% yield, and AEP has maintained this streak since July 1910 [3].

AEP's recent financial performance has been robust. The company reported strong first-quarter 2025 operating earnings of $1.54 per share, reaffirming its 2025 operating earnings guidance range of $5.75 to $5.95 per share [2]. Additionally, the company's capital plan, totaling $54 billion over five years, highlights its commitment to infrastructure investments and growth.

However, AEP faces challenges, including a $28 million charge related to the write-off of previously deferred OVEC costs due to legislative changes in Ohio and declining residential sales driven by increased efficiency and reduced usage [2]. Furthermore, the company is navigating potential delays and adjustments in load growth projections, particularly with hyperscale data centers like Microsoft's decision to delay projects [2].

Analysts have adjusted their price targets and ratings for AEP. BofA Securities reduced its price target to $114.00 from $117.00 while maintaining a Buy rating, noting updated earnings estimates for the second quarter of 2025 [2]. The consensus recommendation from 21 brokerage firms is currently a "Hold" status, with an average target price of $109.99 [2].

In summary, AEP's quarterly dividend declaration reflects the company's financial stability and commitment to shareholder returns. However, investors should consider the company's ongoing challenges and the market's evolving outlook.

References:
[1] https://www.prnewswire.com/news-releases/aep-declares-quarterly-dividend-on-common-stock-302510953.html
[2] https://www.gurufocus.com/news/2984731/aep-stock-target-reduced-by-bofa-analyst-aep-stock-news
[3] https://www.investing.com/news/company-news/aep-declares-quarterly-dividend-of-93-cents-per-share-93CH-4146602