American Electric Power Company, Inc.
AEPAmerican Electric Power Company, Inc. (AEP) is a Utilities company that currently yields 3.14% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $79.91 and the overvaluation threshold at $112.91. American Electric Power Company, Inc. holds a quality score of 47/100 (Average), reflecting 14 consecutive years of dividend growth with a 66% 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 33.9% downside to reach the Weiss buy zone
Undervaluation starts near $79.91, where the annual dividend would imply roughly 4.76% yield. That is 1.61% above today's yield.
Buy-zone price
$79.91
Target yield
4.76%
Research checklist
What to clear before buying the yield
Updated Aug 23, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
66%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
2026-08-22 → 2026-08-23
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
American Electric Power Company, Inc. is trading near its historical overvaluation band.
Current yield 3.1% vs historical max 7.0% (45% of maximum).
14 consecutive years without a dividend cut.
Reasonable payout ratio of 66%.
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
$332
Year 10 Income
$791
Yield on Cost
8.34%
Total Income
$5,256
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
See what AEP dividends you actually received with Sharesight
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
Invest in AEP
Check American Electric Power Company, Inc. availability and current costs on eToro
Check eToro terms and availability →DividendVisual may earn a commission if you open an account via this link, at no cost to you. Capital at risk. Not financial advice.
In-depth analysis
→ AEP Dividend Analysis ArticleCollections