American Electric Power: Buy This Underappreciated Dividend Growth Stock Now

Kody's Dividends
9.99K Followers
(11min)

Summary

  • The rise of artificial intelligence is a major boon to regulated electric utilities.
  • American Electric Power's operating revenue and operating EPS climbed higher in Q2.
  • The electric utility's interest coverage ratio is healthy and the debt-to-capital ratio is holding steady.
  • Shares of AEP are priced 6% below my fair value estimate.
  • The electric utility could deliver 26% cumulative total returns through 2026.

154,000 volt power transmission line

A view of an electric power line.

energyy

As a dividend growth investor, I like to invest in companies with proven business models, growth tailwinds, and investment-grade balance sheets.

This is because an established business model conveys a sense

This article was written by

9.99K Followers
Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also the inspiration of my pseudonym here on Seeking Alpha.By God's grace, I owe everything to my blog for introducing me to the Seeking Alpha community as an analyst. That's my story and I hope you enjoy my work examining dividend growth stocks and the occasional growth stock!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AEP, WEC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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