American Electric Power CoAEP -0.12%78 Dividend Payout Ratio is 0.57 as of Mar. 2026, which is 10% below its 10-year median of 0.63. GuruFocus rates AEP with a GF Score™ of 78/100 and a GF Value™ of $110.98 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 373 Utilities - Regulated companies, American Electric Power Co ranks better than 50.4% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. American Electric Power Co's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.57.
The historical rank and industry rank for American Electric Power Co's Dividend Payout Ratio or its related term are showing as below:
AEP'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.54 Med: 0.63 Max: 0.74
Current: 0.54
During the past 13 years, the highest Dividend Payout Ratio of American Electric Power Co was 0.74. The lowest was 0.54. And the median was 0.63.
AEP's Dividend Payout Ratio is ranked better than 50.4% of 373
companies
in the Utilities - Regulated industry
Industry Median: 0.54
vs AEP: 0.54
During the past 13 years, the highest Trailing Annual Dividend Yield of American Electric Power Co was 4.60%. The lowest was 2.60%. And the median was 3.39%.
During the past 12 months, American Electric Power Co's average Dividends Per Share Growth Rate was 3.90% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 5.70% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 5.80% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was 5.80% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of American Electric Power Co was 6.10% per year. The lowest was -16.40% per year. And the median was 2.70% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
American Electric Power Co (NAS:AEP) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
American Electric Power Co Dividend Payout Ratio Related Terms
American Electric Power Co Dividend Payout Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Electric Power Co Dividend Payout Ratio Chart
AEP vs D, ETR, XEL: Dividend Payout Ratio Comparison
For the Utilities - Regulated Electric subindustry, American Electric Power Co's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Electric Power Co Dividend Payout Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Electric Power Co's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where American Electric Power Co's Dividend Payout Ratio falls into.
American Electric Power Co Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
American Electric Power Co's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Electric Power Co (AEP) has a Dividend Payout Ratio of 0.57 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on American Electric Power Co and its competitors. This is 10% below median its historical median of 0.63. Over the past decade, American Electric Power Co's Dividend Payout Ratio has ranged from 0.54 to 0.74. According to the industry distribution chart, American Electric Power Co ranks #185 out of 373 companies in the Utilities - Regulated industry, placing it in the top 49.6%.
Is American Electric Power Co's Dividend Payout Ratio too high?
American Electric Power Co's current Dividend Payout Ratio of 0.57 is 10% below median its 10-year median of 0.63. Over the past 10 years, this metric has ranged from a low of 0.54 to a high of 0.74. The Utilities - Regulated industry median Dividend Payout Ratio is 0.54. American Electric Power Co's value of 0.57 is 5.6% above this industry median. Based on the distribution chart, American Electric Power Co ranks #185 out of 373 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, American Electric Power Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Electric Power Co's Dividend Payout Ratio compare to D and ETR?
According to the Utilities - Regulated industry distribution chart, American Electric Power Co ranks #185 out of 373 companies for Dividend Payout Ratio. This puts American Electric Power Co in the upper half of its industry. The industry median Dividend Payout Ratio is 0.54. American Electric Power Co's value of 0.57 is 5.6% above this benchmark. Historically, American Electric Power Co's own Dividend Payout Ratio has ranged from 0.54 to 0.74 over the past decade. While the company's 10-year median is 0.63 vs. the industry median of 0.54, American Electric Power Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for an Utilities - Regulated company?
The median Dividend Payout Ratio among Utilities - Regulated companies is 0.54, based on 373 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Electric Power Co's current Dividend Payout Ratio of 0.57 is 5.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on American Electric Power Co and its competitors. For the Utilities - Regulated industry, the median Dividend Payout Ratio is 0.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Electric Power Co's current Dividend Payout Ratio is 0.57, which is 10% below median its own 10-year median of 0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Electric Power Co stock overvalued right now?
Based on GuruFocus' analysis, American Electric Power Co (AEP) is currently considered Modestly Overvalued. The stock's GF Value™ is $110.98, compared to a current price of $133.58 — trading 20.4% above its estimated fair value. The current Dividend Payout Ratio is 0.57, which is 10% below median its 10-year median of 0.63 and 5.6% above the Utilities - Regulated industry median of 0.54. American Electric Power Co's overall GF Score™ is 78/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For American Electric Power Co (AEP), the current Dividend Payout Ratio is 0.57 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Electric Power Co (AEP) Overvalued in 2026?
Based on GuruFocus' analysis, American Electric Power Co stock appears to be overvalued.
The current stock price of $133.58 is trading 20.4% above its estimated GF Value™ of $110.98.
GuruFocus considers American Electric Power Co to be Modestly Overvalued.
Key valuation signals for AEP:
Dividend Payout Ratio: 0.57 (10% below median its 10-year median of 0.63)
GF Value™: $110.98 vs. price of $133.58 (20.4% above fair value)
Industry Position: 5.6% above the Utilities - Regulated median (#185 of 373)
No single metric tells the full story. See the AEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 39% of AEP's capacity is coal, with the remainder from a mix of natural gas (28%), renewable energy and hydro (23%), nuclear (7%), and demand response (3%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
78GF Score
Get the complete analysis for AEP
Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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