11 Most Profitable Utility Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 55 

American Electric Power Company, Inc. (NASDAQ:AEP), one of the largest U.S. electric utilities, serves 5.6 million customers across 11 states and operates the nation’s largest transmission system with 40,000 miles of lines. It also has about 29,000 MW of generation capacity.

In Q2 2025, American Electric Power Company, Inc. (NASDAQ:AEP) reported record operating earnings of $1.43 per share, up from $1.25 a year earlier, and reaffirmed its 2025 guidance of $5.75–$5.95 per share along with a 6%–8% long-term growth target. The strong results reflect customer-focused execution, regulatory progress, and growing electricity demand.

The company plans $54 billion in capital investments from 2025 to 2029 to modernize the grid, enhance reliability, and integrate more renewable energy. This includes securing agreements for 24 GW of new load by decade’s end, up from the previous 21 GW target, driven by economic growth, electrification, and infrastructure expansion. Recent legislative and regulatory support in states like Oklahoma, Ohio, and Texas has facilitated new project approvals, including the Green Country natural gas plant acquisition.