American Electric Power CoAEP -0.12%78 5-Year Yield-on-Cost % is 3.71 as of Jun. 24, 2026, which is 17% below its 10-year median of 4.49. 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 426 Utilities - Regulated companies, American Electric Power Co ranks worse than 58.22% on this metric.
The historical rank and industry rank for American Electric Power Co's 5-Year Yield-on-Cost % or its related term are showing as below:
AEP'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.45 Med: 4.49 Max: 6.1
Current: 3.71
During the past 13 years, American Electric Power Co's highest Yield on Cost was 6.10. The lowest was 3.45. And the median was 4.49.
AEP's 5-Year Yield-on-Cost % is ranked worse than 58.22% of 426
companies
in the Utilities - Regulated industry
Industry Median: 4.185
vs AEP: 3.71
American Electric Power Co (NAS:AEP) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
American Electric Power Co 5-Year Yield-on-Cost % Related Terms
AEP vs D, ETR, XEL: 5-Year Yield-on-Cost % Comparison
For the Utilities - Regulated Electric subindustry, American Electric Power Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Electric Power Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where American Electric Power Co's 5-Year Yield-on-Cost % falls into.
American Electric Power Co 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
American Electric Power Co (AEP) has a 5-Year Yield-on-Cost % of 3.71 as of Jun. 24, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Electric Power Co and its competitors. This is 17% below median its historical median of 4.49. Over the past decade, American Electric Power Co's 5-Year Yield-on-Cost % has ranged from 3.45 to 6.10. According to the industry distribution chart, American Electric Power Co ranks #248 out of 426 companies in the Utilities - Regulated industry, placing it in the top 58.2%.
Is American Electric Power Co's 5-Year Yield-on-Cost % too high?
American Electric Power Co's current 5-Year Yield-on-Cost % of 3.71 is 17% below median its 10-year median of 4.49. Over the past 10 years, this metric has ranged from a low of 3.45 to a high of 6.10. The Utilities - Regulated industry median 5-Year Yield-on-Cost % is 4.19. American Electric Power Co's value of 3.71 is 11.4% below this industry median. Based on the distribution chart, American Electric Power Co ranks #248 out of 426 companies in the Utilities - Regulated industry, which is below 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 5-Year Yield-on-Cost % compare to D and ETR?
According to the Utilities - Regulated industry distribution chart, American Electric Power Co ranks #248 out of 426 companies for 5-Year Yield-on-Cost %. This places American Electric Power Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.19. American Electric Power Co's value of 3.71 is 11.4% below this benchmark. Historically, American Electric Power Co's own 5-Year Yield-on-Cost % has ranged from 3.45 to 6.10 over the past decade. While the company's 10-year median is 4.49 vs. the industry median of 4.19, American Electric Power Co has consistently been below 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 5-Year Yield-on-Cost % for an Utilities - Regulated company?
The median 5-Year Yield-on-Cost % among Utilities - Regulated companies is 4.19, based on 426 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Electric Power Co's current 5-Year Yield-on-Cost % of 3.71 is 11.4% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Electric Power Co and its competitors. For the Utilities - Regulated industry, the median 5-Year Yield-on-Cost % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Electric Power Co's current 5-Year Yield-on-Cost % is 3.71, which is 17% below median its own 10-year median of 4.49. 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 5-Year Yield-on-Cost % is 3.71, which is 17% below median its 10-year median of 4.49 and 11.4% below the Utilities - Regulated industry median of 4.19. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For American Electric Power Co (AEP), the current 5-Year Yield-on-Cost % is 3.71 as of Jun. 24, 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:
5-Year Yield-on-Cost %: 3.71 (17% below median its 10-year median of 4.49)
GF Value™: $110.98 vs. price of $133.58 (20.4% above fair value)
Industry Position: 11.4% below the Utilities - Regulated median (#248 of 426)
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
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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