Dividend Contenders List: Top 20 Stocks

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

Dividend Yield as of January 22: 3.19%

On January 21, Morgan Stanley raised its price target on American Electric Power Company, Inc. (NASDAQ:AEP) to $125 from $120. It maintained an Overweight rating on the stock. The firm said it is updating its view on Regulated & Diversified Utilities and IPPs across North America. In its note, Morgan Stanley pointed out that utilities lagged the S&P’s return in December, even as the broader market pushed higher.

Separately, Reuters reported on January 8 that AEP said one of its units will purchase a substantial portion of its option for solid oxide fuel cells in a deal valued at about $2.65 billion. The move ties into the company’s plan to develop and build a fuel cell power generation facility.

AEP originally signed an agreement with Bloom Energy in 2024 to acquire 100 megawatts of solid oxide fuel cells, along with an option to purchase an additional 900 MW. Earlier this week, AEP’s unit exercised that option, according to a regulatory filing.

The company also said it has secured a long-term offtake arrangement. AEP signed a 20-year deal with an unnamed customer that will take the full output of the fuel cell facility, which is planned near Cheyenne, Wyoming. The offtake agreement still depends on certain conditions being met, which AEP expects to happen by Q2 2026. If those conditions are not satisfied, AEP said it would receive financial compensation covering the capital and costs it incurs.

American Electric Power Company, Inc. (NASDAQ:AEP) is an electric utility holding company. Through its operating utilities, it provides generation, transmission, and distribution services to more than five million retail customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.