American Electric Power Company, Inc.
AEPAmerican Electric Power Company, Inc. (AEP) is a Utilities company that currently yields 2.78% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $79.48 and the overvaluation threshold at $110.25. American Electric Power Company, Inc. holds a quality score of 47/100 (Average), reflecting 14 consecutive years of dividend growth with a 56% payout ratio. The 5-year dividend CAGR stands at 5.7%.
AEP Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 41.5% downside to reach the Weiss buy zone
Undervaluation starts near $79.48, where the annual dividend would imply roughly 4.76% yield. That is 1.97% above today's yield.
Buy-zone price
$79.48
Target yield
4.76%
Research checklist
What to clear before buying the yield
Updated Jul 9, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
56%Earnings coverage leaves room for noise.
Cash payout
N/AConfirm cash conversion and one-off effects.
Dividend growth
5.7%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-07-08 → 2026-07-09
Price
-1.2%$137.53 → $135.90
Price fell 1.2% since the prior snapshot.
Why Now?
American Electric Power Company, Inc. is trading near its historical overvaluation band.
Current yield 2.8% vs historical max 7.0% (40% of maximum).
14 consecutive years without a dividend cut.
Conservative payout ratio of 56%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 47/100 quality score says the headline yield needs extra skepticism.
Start by checking whether payout coverage and business durability still support the dividend.
AEP Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$294
Year 10 Income
$672
Yield on Cost
7.04%
Total Income
$4,547
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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Dividend income log · Yield on cost · DRIP cost basis · Tax reports
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗AEP Dividend Quality Score
Quality Score
Average
Key Metrics
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In-depth analysis
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