At a glance
American Electric Power Co Inc is worth $70.97B, about 20 times its fiscal 2025 earnings. Revenue grew 10.9% to $21.88B in fiscal 2025, with 16.4% kept as profit; over 5 years it has grown 8.0% a year. It pays a 2.92% dividend yield, raised every year for at least 9 years, and returned $5.78B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +11.7% over the past year with dividends reinvested and +12.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 32.4% in the 2020 crash (S&P 500: 33.7%) and 22.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 24 months and 22 months after the lows.
The business in plain English
American Electric Power is a holding company that owns regulated electric utilities serving parts of 11 states: Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. Its subsidiaries generate electricity, carry it over high-voltage transmission lines and deliver it to homes and businesses. The Federal Energy Regulatory Commission (FERC) and state commissions set its prices. The returns on equity they allow (the profit on shareholders' invested money) range from 9.25% to 10.5%.
Revenue was $21.9 billion in the fiscal year ended December 31, 2025. The Vertically Integrated Utilities segment, which owns power plants as well as the wires, brought in 58.6%. Transmission and Distribution Utilities added 28.1%. They deliver power in Ohio and part of Texas, where customers can choose a competing power supplier. Generation & Marketing, which includes competitive retail supply and power trading, added 12.6%. A fourth segment, AEP Transmission Holdco, owns stand-alone transmission companies regulated by FERC.
Households provided 35.4% of revenue, commercial customers 21.5% and industrial customers 14.9%. Key industries it serves include chemical manufacturing, oil and gas extraction, pipelines, metals and data processing, mainly data centers and cryptocurrency operations. Its Ohio utility alone serves about 1.5 million retail customers, and AEP Texas serves about 1.1 million. The utilities also supply wholesale power to other utilities, rural cooperatives and municipalities.
Price history
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AEP +11.7% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Residential Revenues | $7.75B | 35.4% |
| Commercial Revenues | $4.69B | 21.5% |
| Industrial Revenues | $3.25B | 14.9% |
| Retail, Trading and Marketing Revenues | $2.40B | 11% |
| Transmission Revenues | $1.60B | 7.3% |
| Generation Revenues | $1.22B | 5.6% |
| Other Revenues | $526.0M | 2.4% |
| Other Retail Revenues | $302.0M | 1.4% |
By business segment
| VIU | $12.82B | 58.6% |
| T&D | $6.15B | 28.1% |
| G&M | $2.76B | 12.6% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $6.83B, up 13.7% from a year earlier, and net income was $1.19B (+22.1%).
- For fiscal 2025, revenue was $21.88B (+10.9% year over year; +8.0% a year from FY2020 to FY2025) with a 16.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +8.0% good |
|---|---|
| Operating margin | 24.3% good |
| Free cash flow margin | 16% good |
| Return on equity (FY2025) | 11.5% watch |
| Return on assets (FY2025) | 3.1% watch |
| Net cash (cash minus debt) | $-51.87B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $14.92B | $2.20B | $3.83B |
| FY2021 | $16.79B | $2.49B | — |
| FY2022 | $19.64B | $2.31B | — |
| FY2023 | $18.98B | $2.21B | $4.86B |
| FY2024 | $19.72B | $2.97B | $6.41B |
| FY2025 | $21.88B | $3.58B | $3.49B |
Valuation snapshot
| Market value | $70.97B |
|---|---|
| P/E ratio | 19.6 |
| Dividend yield | 2.92% |
Rank among 1514 US companies
Market value at each year end
American Electric Power Co’s market value went from $30.96B at the end of 2016 to $70.97B on Nov 2, 2026, about 2.3 times as much; since the end of 2025 it is up 14%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $70.97B | +13.8% |
| 2025 | $62.37B | +26.9% |
| 2024 | $49.15B | +15.1% |
| 2023 | $42.71B | -12.5% |
| 2022 | $48.79B | +8.8% |
| 2021 | $44.86B | +8.5% |
| 2020 | $41.35B | -11.5% |
| 2019 | $46.70B | +26.7% |
| 2018 | $36.87B | +1.9% |
| 2017 | $36.19B | +16.9% |
| 2016 | $30.96B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| AEP price data to Nov 2, 2026 | +15.6% | +11.7% | +22.4% | +12.8% | +11.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +15.6% |
| 2025 | +29.4% |
| 2024 | +18.2% |
| 2023 | -11.0% |
| 2022 | +10.4% |
| 2021 | +10.7% |
| 2020 | -9.0% |
| 2019 | +30.5% |
| 2018 | +5.4% |
| 2017 | +20.9% |
| 2016 | +11.9% |
| 2015 | -0.3% |
| 2014 | +35.1% |
| 2013 | +14.2% |
| 2012 | +8.2% |
| 2011 | +20.8% |
| 2010 | +8.7% |
| 2009 | +10.4% |
| 2008 | -25.4% |
| 2007 | +13.1% |
| 2006 | +19.6% |
| 2005 | +12.3% |
| 2004 | +17.5% |
| 2003 | +19.2% |
| 2002 | -32.9% |
| 2001 | -1.3% |
| 2000 | +54.7% |
| 1999 | -27.4% |
| 1998 | -4.1% |
| 1997 | +32.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 46.5% over that stretch · deepest drop along the way 48%, back to its old high 33.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 32.4% over that stretch · deepest drop along the way 32.4%, back to its old high 23.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 5.5% over that stretch · deepest drop along the way 22.3%, back to its old high 21.6 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 1 sales ($250K), 1 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 8, 2026 | Kate Dixon Controller, CAO | sell (plan) | $250K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.51% | Mar 31, 2026 |
| BlackRock, Inc. | 7.5% | Mar 31, 2025 |
| Vanguard Portfolio Management | 5.68% | Sep 30, 2026 |
ETFs with the most weight in AEP
| URAN Themes Uranium & Nuclear ETF | 7.91% |
| RNWZ TrueShares Eagle Global Renewable Energy Income ETF | 6.11% |
| FPWR First Trust EIP Power Solutions ETF | 5.96% |
| XLU Utilities Select Sector SPDR Fund | 4.67% |
| QQLV Invesco QQQ Low Volatility ETF | 4.53% |
| ZAP Global X U.S. Electrification ETF | 4.51% |
| FUTY Fidelity MSCI Utilities Index ETF | 4.34% |
| VPU Vanguard Utilities ETF | 4.25% |
What could go wrong
- Data center demand may fall short. AEP's spending plans assume fast-growing demand from data centers and other large customers, much of it tied to AI. If that demand stalls or customers pull out, canceled projects could leave unrecoverable costs.
- Regulators control prices and cost recovery. FERC and commissions in 11 states set AEP's rates. They can refuse or delay recovery of costs, rule spending unreasonable, reverse past approvals or cut rates if profits exceed the allowed return.
- A costly build-out needs heavy borrowing. Total debt was about $52.5 billion as of September 30, 2026. AEP says the build-out may require more capital than utilities have historically needed. Tight markets or credit downgrades could raise costs or delay projects.
- Big projects can run late or over budget. New plants, power lines and data center hookups face supply chain shortages, tariffs, inflation, labor gaps and permitting hurdles. Delays or cost overruns could hurt results, and canceled work may be written off.
- Transmission rate challenges could force refunds. Transmission charges are set by FERC-approved formulas, and parts of AEP's formulas have been challenged. A loss could lower future rates or force refunds of money already collected.
- Wildfire and nuclear risks. AEP warns one or more wildfires could cause tremendous losses and hurt its credit ratings. Its Indiana and Michigan utility also carries nuclear risk, including the cost of decommissioning, or retiring, nuclear facilities.
Recent events
- Quarterly results released
- Executive or board change
- Quarterly results released
- Executive or board change
- Major agreement signed; Other company announcement
- Quarterly results released
- Shareholder vote results
- Executive or board change
- Quarterly results released
- Other company announcement
For income and retirement investors
AEP has raised its dividend per share for at least nine straight years through fiscal 2025, and the streak may be longer. The dividend grew from $2.84 in 2020 to $3.74 in 2025, about 5.7% a year. The 2025 payout equaled 56.1% of earnings and 57.5% of free cash flow (cash left after capital spending). The yield was 2.96% as of October 28, 2026. AEP repurchased no shares from fiscal 2021 through 2025. Its share count rose 8% from December 2021 to October 2026.
The stock has dropped hard in past downturns. It fell 48% from December 2007 to March 2009 and took about 33 months to recover. In the 2020 COVID crash it fell 32.4% and took about 23.5 months to regain its peak. In 2022 it slipped just 5.5% during the market's slide. It then fell 22.3% from mid-September to mid-October and did not recover until July 2024. Single stocks carry more risk than diversified funds.
Questions investors ask
How does American Electric Power make money?
AEP earns money by generating, transmitting and delivering electricity through regulated utilities in 11 states, at prices approved by FERC and state commissions. Revenue was $21.9 billion in fiscal 2025. The Vertically Integrated Utilities segment, which owns power plants and wires, produced 58.6%. Transmission and Distribution Utilities in Ohio and Texas produced 28.1%, and Generation & Marketing produced 12.6%. Residential customers made up 35.4% of revenue, commercial 21.5% and industrial 14.9%.
Does AEP raise its dividend every year?
Yes, for at least nine years in a row. Its SEC filings show the dividend rising each year across fiscal 2016 to 2025, and the streak may go back further. The dividend rose from $2.84 per share in 2020 to $3.74 in 2025, about 5.7% a year, and equaled 56.1% of 2025 earnings. The yield was 2.96% as of October 28, 2026. Past increases don't guarantee future ones.
Why do data centers matter so much to AEP?
They are central to its growth plans. AEP says demand for power on its system exceeds historical levels, driven largely by data centers and other large customers supporting AI. Its spending plans for new power plants and transmission lines are built around meeting that demand. Data processing, mainly data centers and cryptocurrency operations, is one of the main industries it serves. The risk is that if this demand falls short or projects are canceled, AEP could be left with costs it cannot recover.
How much debt does American Electric Power have?
AEP had about $52.5 billion of total debt and $670 million of cash and investments as of September 30, 2026, against about $32.8 billion of shareholders' equity. Utilities typically borrow heavily because power plants and lines are expensive and last for decades. AEP warns that its build-out may require more capital than utilities have historically needed. It also warns that credit rating downgrades or tighter markets could raise its borrowing costs or delay projects.
How has AEP stock performed over the long term?
Based on its share price, AEP returned about 11.1% a year over the 10 years to October 28, 2026, or 187% in total. It returned 12.6% a year over five years and 14.8% over one year. Its one-year beta, a measure of how much a stock moves with the market, was -0.09. That means its price moved largely independently of the market over that year. Still, its deepest drop in about 30 years of price history was 62.7%.