American Electric Power

Methodology

American Electric Power's multi-state regulated footprint provides stable predictable earnings from rate-base growth and approved returns. Transmission-heavy assets and renewable investments offer steady visibility. This calculation is quite reliable given regulatory protections, though rate case outcomes and regulatory relationships impact results.

Methodology

AEP's PEG ratios are typical for large regulated electrics with modest but dependable growth profiles. Low-to-mid single-digit growth from infrastructure investment justifies premium valuations given defensive characteristics. Compare to other regulated electrics to assess whether multi-state diversification and transmission focus warrant current pricing.

Methodology

AEP's dividend represents a core component of total returns for this defensive utility. The consistent growth track record appeals to income investors seeking stability and inflation protection. PEGY is essential for proper valuation since high yield combined with modest growth creates the return profile attracting utility investors.