American Electric Power Co., Inc. (AEP) strives to provide its shareholders with increased value over the long term. The company has raised its quarterly cash dividend by 6% to 53 cents from the previous payout of 50 cents. It gives out dividends to its shareholders on a quarterly basis and hikes the dividend rate at regular intervals in an effort to maximize shareholder value.
The dividend will be paid on Dec 10, 2014 to shareholders of record as on Nov 10, 2014. On an annual basis, the dividend will amount to $2.12 per share.
The company has been paying cash dividends for the past 418 consecutive quarters, with dividend hikes being announced at regular intervals. American Electric Power had earlier increased its quarterly cash dividend in Oct 2013.
American Electric Power has a stable balance sheet position with a strong cash generating ability. As of Jun 30, 2014, the company had cash and cash equivalents of 190 million, up 61% from Dec 31, 2013. Its cash flow from operations in the first six months of 2014 stood at $2.2 billion. Such strong financials have enabled the company to provide its shareholders with solid returns.
The company is also focused on infrastructure development activity throughout its 11-state service area. It plans to increase the capital expenditure for transmission projects to realize its growth potential in the long term.
American Electric Power is slated to report its third-quarter 2014 results before the opening bell on Oct 23, 2014. The company is expected to report earnings per share of $1.03 in the third-quarter as per the Zacks Consensus Estimate.
American Electric Power currently holds a Zacks Rank #2 (Buy). Better-ranked stocks in the same sector include Hawaiian Electric Industries Inc. (HE), IdaCorp, Inc. (IDA) and Korea Electric Power Corp. (KEP), each carrying a Zacks Rank #1 (Strong Buy).
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