12 Best S&P 500 Stocks to Buy for Dividends

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

Number of Hedge Fund Holders: 62

Dividend Yield as of June 23: 2.84%

American Electric Power Company, Inc. (NASDAQ:AEP) is one of the nation’s largest electricity producers with approximately 29 GW of diverse generating capacity. The company operates and maintains the nation’s largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states.

On June 18, Ladenburg trimmed its price target on American Electric Power Company, Inc. (NASDAQ:AEP) from $148 to $143, but maintained its ‘Buy’ rating on the shares. The lowered target still indicates an upside potential of almost 10% from the current price level.

To keep up with the soaring load demand, American Electric Power Company, Inc. (NASDAQ:AEP) recently increased its 5-year capital plan to $78 billion, up from $72 billion previously. In its last earnings call, the company reaffirmed its operating earnings guidance of $6.15 to $6.45 per share for full-year 2026, indicating a YoY growth of 5.5% at the midpoint. Moreover, it reiterated its premium operating earnings growth rate of 7% to 9% for 2026 through 2030, with an expected CAGR of 9%.

American Electric Power Company, Inc. (NASDAQ:AEP) was also recently included in our list of the 15 Best Nuclear Power Stocks to Buy According to Wall Street Analysts.