American Electric Power

AEP

Market cap $64.1B

For as long as most people can remember, utility stocks have been the investing equivalent of eating your vegetables.

American Electric Power said on Thursday its unit will buy a substantial portion of its option for solid oxide fuel cells in a deal worth about $2.65 billion as part of its plans to develop and build a fuel cell power generation facility.

COLUMBUS, Ohio, Jan. 7, 2026 /PRNewswire/ -- A joint venture between Transource Energy, LLC and BHE Transmission plans to build a nearly 200 mile, 765-kV line in Wisconsin following selection by the Midcontinent Independent System Operator (MISO). This proposal for the Bell Center-Columbia–Sugar Creek–IL/WI State Line 765 kV-Competitive Transmission Project (BECI) was chosen following a thorough evaluation for cost and design, project implementation, operations and maintenance, and transmission planning participation as part of MISO's competitive transmission planning process.

AEP's $72B capital plan and renewable buildout aim to lift efficiency and revenues, but reliance on a few REPs poses cash-flow risk.

Investors interested in Utility - Electric Power stocks are likely familiar with OGE Energy (OGE) and American Electric Power (AEP). But which of these two stocks offers value investors a better bang for their buck right now?

Investors interested in stocks from the Utility - Electric Power sector have probably already heard of FirstEnergy (FE) and American Electric Power (AEP). But which of these two stocks is more attractive to value investors?

American Electric Power is rated 'Buy' due to its unique infrastructure, robust growth drivers, and recent price dip. AEP's $72B capital plan and unmatched transmission network position it to capture surging AI-driven and industrial power demand. Management targets 7-9% annual EPS growth through 2030, supported by a well-covered 3.2% dividend yield.

American Electric Power (AEP) is upgraded to a buy rating, driven by secular growth tailwinds. AEP benefits from resilient electricity demand, largely independent of consumer sentiment, and stands to gain from AI-driven data center expansion. Dividend growth is targeted at 7–9% through 2030 with a sustainable payout ratio, appealing to income-focused investors.

AEP (AEP) reported earnings 30 days ago. What's next for the stock?

Investors with an interest in Utility - Electric Power stocks have likely encountered both FirstEnergy (FE) and American Electric Power (AEP). But which of these two companies is the best option for those looking for undervalued stocks?