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AEP Dividend Scorecard

American Electric Power Company, Inc. · Stock — Utility · graded on the House framework — is the payout covered, is the yield real or a trap, and does it compound or just pay? Snapshot · Week of October 19, 2026

AEPAmerican Electric Power Company, Inc.Stock — Utility
Yield
3.0%
$0.97/qtr × 4 at the $129.69 close on Oct. 23, 2026
Dividend
$0.97/qtr
Declared Oct. 20, 2026
Payout ratio
61%
Of 2026 operating EPS guidance midpoint, $6.40
Pays
Quarterly
House verdict

Covered, inside its payout target. A 3.0% yield on a roughly 61% payout against the $6.40 midpoint of raised 2026 operating EPS guidance is covered income inside the company's 50%–70% target payout range on operating earnings: $0.97 a quarter, raised in October 2026 by $0.02 for a 15th consecutive year, with quarterly dividends paid uninterrupted since July 1910. The raise is small — 2.1% — but the coverage is the point.

Key risk: Capital scale — a $78 billion 2026–2030 investment plan for transmission, distribution and generation, funded with debt and equity while second-quarter 2026 GAAP profit fell from a year earlier; the dividend is covered on operating earnings, and operating earnings have to keep delivering.

Changes if: Operating earnings fall short of the raised $6.25–$6.55 guidance range, pushing the payout above the 50%–70% target band, or the capital program forces funding on terms that squeeze the coverage.

What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.

AEP in the House

Room: Utilities. Not one of the House's current holdings — in Order a New House it takes a seat in this room and carries the room's 13% target. Target 13% — regulated, slow-moving payers that steady the House when markets wobble.

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Figures are the snapshot from the week of October 19, 2026, checked against the company's SEC filings (EDGAR) and announcements — not a live feed, and not financial advice. Read the full disclaimers.