American Electric Power Company, Inc. (AEP)

From October 2024 to October 2025, AEP shares delivered a 20.25% return, outperforming the S&P 500's 16.53% gain. AEP reported better-than-expected Q2 results, with EPS of $1.43 exceeding forecasts by 11.7% and revenue improving 11.1% year-over-year to $5.1 billion, surpassing consensus estimates. American Electric Power announced a dividend increase to $0.95 per share, reflecting a 3.3% yield. AEP is ramping up its five-year capital spending plan from $54 billion to $64 billion, with a potential increase to $70 billion, aimed at modernizing the grid and integrating renewables. AEP Transmission secured a $1.6 billion loan guarantee from the U.S. Department of Energy's Loan Programs Office to upgrade nearly 5,000 miles of transmission lines. In the last three months, insiders have sold 11,006 shares of company stock valued at $1,243,522.

Demand for American Electric Power's products and services exhibits seasonality, primarily influenced by heating and cooling needs. Electricity usage and rates can fluctuate month-to-month. Seasonal pricing is in effect for some customers, with on-peak prices typically applied from June 1 to October 31. AEP Energy offers a PeakAdvisory Service to help customers manage and reduce demand-based costs during high demand hours. The company also provides budget billing options to help customers balance seasonal highs and lows in their energy costs.

American Electric Power Co., Inc. (AEP) is a major electric utility holding company in the United States, engaged in the generation, transmission, and distribution of electricity. AEP operates within the utilities sector, specifically in the electric utilities industry, and holds a notable market share in the Coal & Natural Gas Power industry. The company's business model focuses on regulated utility operations, generating revenue primarily through regulated electricity sales to residential, commercial, and industrial customers, transmission service fees, and renewable energy project development. AEP generates electricity utilizing a diverse mix of energy sources. It owns and operates one of the largest electricity transmission and distribution systems in the U.S. AEP provides customer service and billing, energy efficiency programs, demand response solutions, and electric vehicle (EV) charging infrastructure. The company is expanding its renewable energy portfolio through the development of utility-scale wind and solar farms, renewable energy purchase agreements, and energy storage solutions. Through AEP Energy, it acts as a certified retail energy supplier of electricity and natural gas to homeowners, small businesses, and commercial & industrial customers in deregulated states.

American Electric Power serves over 5 million regulated customers across 11 states in the Midwest and Southwest, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. The company's transmission system directly or indirectly serves approximately 10% of the electricity demand in the Eastern Interconnection.

American Electric Power has consistently received recognition for its corporate reputation and commitment to stakeholders. AEP has been named to the JUST 100 list for the fifth consecutive year, placing in the top 20 overall and second in the utilities industry. The company was also included in Fortune magazine's World's Most Admired Companies list in the electric and gas utilities sector for the eighth consecutive year. In the past year, AEP Ohio responded to public concerns about surging utility bills while the parent company reported record-setting second-quarter earnings, clarifying that its finances are distinct from the parent company's and that its earnings are capped on rates.

Institutional investors hold a significant portion of American Electric Power's stock, owning 75.24% of the company's shares. Major institutional investors that have recently increased their stakes include Wellington Management Group LLP, Ghisallo Capital Management LLC, Burkehill Global Management LP, Nuveen LLC, GQG Partners LLC, Sumitomo Mitsui Trust Group Inc., NOMURA HOLDINGS INC, BARCLAYS PLC, SOROBAN CAPITAL PARTNERS LP, and UBS AM. Insiders own less than 0.1% of the company's stock.