10 Best Dividend Stocks According to Jim Cramer

8. American Electric Power Company, Inc. (NASDAQ:AEP)

Dividend Yield: 3.61%

American Electric Power Company, Inc. (NASDAQ:AEP) is among the 10 best dividend stocks, picked from Jim Cramer’s recommendations. Raymond James has initiated coverage of the stock, giving it an Outperform rating alongside a price target of $115.

American Electric Power Company, Inc. (NASDAQ:AEP) is one of the largest electric utility companies in the U.S., serving more than 5 million customers in 11 states. Headquartered in Ohio, the company utilizes multiple energy sources, including coal, natural gas, wind, solar, nuclear, and hydro, to generate and transmit electricity to its customers.

On June 5, 2025, the company finalized a partnership with KKR and PSP Investments. Jointly, these companies acquired a 19.9% equity interest in American Electric Power Company, Inc. (NASDAQ:AEP)’s Ohio and Indiana Michigan transmission companies for $2.82 billion. With this investment, the company aims to meet over 20 gigawatts of new power demand expected by 2030 across its footprint. American Electric Power Company, Inc. (NASDAQ:AEP) will maintain operational control.

A few days after this transmission investment, on June 13, 2025, Raymond James initiated coverage of American Electric Power Company, Inc. (NASDAQ:AEP), assigning the stock an Outperform rating and a $115 price target, thereby enhancing the company’s positive outlook.

On June 17, 2025, the company announced Rob Berntsen as the new EVP and General Counsel, effective July 14, 2025. The stock rating is yet to absorb this change in leadership.

American Electric Power Company, Inc. (NASDAQ:AEP) offers a dividend yield of 3.61%, potentially funded by its earnings as expressed with a payout ratio of 69.88%. Sixteen years of consecutive dividend growth signal a strong financial stability.