AEP - Data Centers Are Driving Demand for This Dividend Stock
2023-12-15 05:17:00 ET
American Electric Power (NASDAQ: AEP) , also known as AEP, is a traditional regulated utility. It is kind of a boring company in many ways, even though its 4.3% yield and an over-decade-long streak of annual dividend hikes might be particularly attractive to conservative income investors. However, there is an interesting trend taking shape that is legitimately exciting when it comes to electricity demand. Here's what's going on and why it should be on your radar.
With a market cap of $42 billion, AEP is one of the largest publicly traded utilities in the United States. It serves close to 5.6 million customers across 11 states, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. As a regulated utility, AEP has a monopoly in the areas it serves, but it has to have its rate increases and investment plans approved by the government.
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Data Centers Are Driving Demand for This Dividend Stock