AEP - Powering Through Uncertainty: American Electric Power's Path To Double-Digit Returns
2024-04-30 15:00:04 ET
Summary
- American Electric Power has reported strong earnings for 1Q24, driven by rate changes, favorable weather, and increased demand from data centers.
- AEP is investing billions in renewable energy and has a solid balance sheet, with a high FFO-to-debt ratio and ample liquidity.
- Analysts expect continued EPS growth for AEP, reinforcing its long-term outlook of 6-7% annual EPS growth.
Introduction
Earlier this year, I sold the only utility stock in my dividend growth portfolio, Duke Energy ( DUK ). I didn't do it because I disliked the company but because of my view on interest rates and inflation.
I'm in the camp that believes in prolonged elevated inflation and interest rates - at least compared to the favorable risk environment between the Great Financial Crisis and 2021....
Powering Through Uncertainty: American Electric Power's Path To Double-Digit Returns