Investors with an interest in Utility - Electric Power stocks have likely encountered both Entergy (ETR) and American Electric Power (AEP). But which of these two stocks is more attractive to value investors?
American Electric Power is an electric utility that has paid a quarterly dividend for 113 years. Currently, American Electric Power offers a forward dividend yield of 3.4%.
The company's changing CEO and the electrification of society, mainly due to the growth of data centers, are tailwinds. However, as a regulated utility, it will be hard to take advantage of the demand growth due to high capital expenditures. I estimate the company is reasonably priced at $100 per share using a discounted dividend model.
AEP (AEP) reported earnings 30 days ago. What's next for the stock?
American Electric is expected to benefit from its systematic investment plan and renewable portfolio expansion amid the impacts of an increased interest rate environment.
Here is how American Electric Power (AEP) and DTE Energy (DTE) have performed compared to their sector so far this year.
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.
With the Fed on course for an interest rate cut as early as fall stocks such as American Electric Power (AEP), Micron (MU), Barrick Gold (GOLD) and PulteGroup (PHM) stand to gain.
Dividend investing remains popular for steady income and long-term growth.
Utility stocks like American Electric Power Company, Inc. (AEP), FirstEnergy Corp. (FE) and Ameren Corporation (AEE) are a safe bet during times of market volatility.
The utility sector may be one to consider amid heightened market volatility and the potential resurgence of broader economic fears. This is especially true after Friday's jobs report showed the US labor force continued to cool while the unemployment rate rose to 4.3%, its highest peak since 2021.
Does American Electric Power (AEP) have what it takes to be a top stock pick for momentum investors? Let's find out.