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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

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By Tomi Kilgore

American Electric Power Co. Inc. /zigman2/quotes/209801263/composite AEP -1.65% 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 /zigman2/quotes/206645117/composite XLU -2.34% of 3.04% and the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX -2.14% 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%.

US : U.S.: Nasdaq
$ 84.98
-1.43 -1.65%
Volume: 3.70M
May 12, 2021 4:00p
P/E Ratio
Dividend Yield
Market Cap
$43.18 billion
Rev. per Employee
US : U.S.: NYSE Arca
$ 64.35
-1.54 -2.34%
Volume: 14.78M
May 12, 2021 4:00p
-89.06 -2.14%
Volume: 2.40B
May 12, 2021 5:03p

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