COLUMBUS, Ohio - American Electric Power Co. (NASDAQ:AEP) announced its 457th consecutive quarterly cash dividend, maintaining its long-standing practice of rewarding shareholders. The company declared an 88-cent dividend per share on its common stock, to be paid on September 10, 2024, to shareholders on record as of August 9, 2024. This announcement reflects the company's commitment to consistent returns, dating back to its first recorded dividend in July 1910.
American Electric Power, headquartered in Columbus, Ohio, is recognized for its extensive operations, including the largest electric transmission system in the United States, spanning over 40,000 miles. The company also boasts more than 225,000 miles of distribution lines that serve 5.6 million customers across 11 states. With a workforce of nearly 16,000 employees, AEP is a major electricity producer with around 29,000 megawatts of generating capacity, which includes close to 6,000 megawatts from renewable sources.
In line with its sustainability goals, AEP plans to invest $43 billion over the coming five years to enhance the grid's reliability and reduce its carbon footprint. The company is on course to achieve an 80% reduction in carbon dioxide emissions from 2005 levels by 2030, aiming for net-zero emissions by 2045.
The organization has earned recognition for its dedication to sustainability, community engagement, and inclusion. AEP's family of companies comprises several utilities, including AEP Ohio, AEP Texas, and others serving various regions in the United States. Additionally, AEP owns AEP Energy, which offers competitive energy solutions nationwide.
Investors and interested parties can access financial and other critical information about AEP through its website, which serves as a channel for distributing material company data. AEP encourages stakeholders to sign up for email alerts to stay informed about the company's updates.
American Electric Power (AEP) has reached a settlement regarding derivative actions filed by four shareholders, related to allegations surrounding House Bill 6. The settlement, subject to final court approval, includes a $450,000 payment for attorneys' fees and the implementation of certain corporate governance reforms. In addition, AEP issued $1 billion in junior subordinated debentures, consisting of two series due in 2054.
Analyst activity surrounding AEP has been varied, with Ladenburg Thalmann upgrading AEP's stock from Sell to Neutral, while UBS Securities downgraded it from Neutral to Sell. BMO Capital Markets projects AEP's earnings per share (EPS) to be $5.59 for 2024, $5.97 for 2025, and $6.35 for 2026, aligning with AEP's reaffirmed 2024 operating earnings guidance.
InvestingPro Insights
As American Electric Power Co. (NASDAQ:AEP) continues its tradition of consistent shareholder returns, the company's financial health and investment profile offer additional insights. According to InvestingPro, AEP operates with a significant debt burden, which is an important consideration for investors. However, this has not deterred the company from raising its dividend for 14 consecutive years, showcasing its commitment to returning value to shareholders.
InvestingPro Data highlights the company's current market capitalization at $50.08 billion, with a P/E ratio of 17.57, reflecting investor sentiment on its earnings capacity. The P/E ratio adjusted for the last twelve months as of Q1 2024 stands slightly lower at 17.45. Additionally, AEP's dividend yield as of mid-2024 is 3.76%, which is compelling for income-focused investors, especially when considering the dividend growth of 6.02% during the same period.
InvestingPro Tips indicate that AEP has maintained dividend payments for 54 consecutive years, underscoring a robust track record of financial stability and reliability. Moreover, analysts predict the company will be profitable this year, which aligns with the positive earnings per share (EPS) data reported. Investors looking to delve deeper into AEP's investment potential can find additional tips on InvestingPro, which currently lists a total of 9 more tips for a comprehensive analysis.
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