American Electric Power: Light Up Your Income Portfolio With This Mission Critical Utility

(12min)

Summary

  • Market volatility can offer buying opportunities, but emotional reactions can lead to costly mistakes; focus on fundamentals to maintain perspective.
  • AEP's five-year capital spending plan and robust growth outlook, driven by data centers, make it a compelling investment.
  • AEP's financial health, undervaluation, and strong dividend growth potential justify a buy rating, with expected 30% cumulative returns through 2026.
  • Risks include cyber breaches, geographic concentration, and natural disasters, but AEP's strategic investments in infrastructure support long-term growth.
  • Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »
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This article was coproduced with Kody Kester.

Market volatility can be a double-edged sword.

On one hand, it can be an investor's best friend. When one can keep their emotions within the perspective of the bigger picture, selloffs can present remarkable buying opportunities.

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This article was written by

Brad Thomas profile picture
118.47K Followers

Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AEP 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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