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Oct. 20, 2020, 1:41 p.m. EDT

American Electric Power raises dividend 5.7%, to yield above utilities peer group

American Electric Power Co. Inc. (NAS:AEP) announced Tuesday a 5.7% increase to its quarterly dividend, to 74 cents a share from 70 cents. The electricity transmission company's new dividend will be payable Dec. 10 to shareholders of record on Nov. 10. The stock slipped 0.2% to $91.12 in afternoon trading. At current prices, the new annual dividend rate implies a dividend yield of 3.25%, compared with the yield for the SPDR Utilities Select Sector ETF (PSE:XLU) of 3.04% and the implied yield for the S&P 500 (S&P:SPX) of 1.63%, according to FactSet. "AEP has paid a cash dividend on its common stock every quarter since 1910, and we're pleased our strategic business decisions continue to provide increased returns to our shareholders," said Chief Executive Nicholas Akins. The stock has slipped 3.6% year to date, while the utilities ETF has eased 0.9% and the S&P 500 has gained 7.6%.

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