Top 5 Electric Utility Dividend Stocks To Buy

4. American Electric Power Company, Inc. (NYSE:AEP)

Number of Hedge Fund Holders: 34

Dividend Yield (as of May 12): 3.18%

American Electric Power Company, Inc. (NYSE:AEP) is an Ohio-based electric utility firm founded in 1906, serving approximately 5.5 million customers across 11 states. It has made sizeable investments towards clean energy, and expects the inauguration of a number of renewable energy facilities within the next two years. It offers shareholders a dividend yield of 3.18% as of May 12, and boasts 17 consecutive years of dividend growth.

On April 25, Credit Suisse analyst Nicholas Campanella initiated coverage of American Electric Power Company, Inc. (NYSE:AEP) with an ‘Outperform’ rating and a price target of $113. The analyst contends that investors should focus on the firm’s strategic pivot of divesting under-earning, low multiple assets.

For the first quarter of 2022, American Electric Power Company, Inc. (NYSE:AEP) posted an EPS of $1.22, outperforming estimates by $0.02. Revenue of $4.6 billion was also above estimates by roughly $200 million, and grew 7.3% year-on-year.

Renaissance Technologies was the largest shareholder of American Electric Power Company, Inc. (NYSE:AEP) at the end of the fourth quarter with a $148 million stake. In total, 34 hedge funds were long on the company shares, with a combined worth of approximately $827 million.

Investment firm ClearBridge Investments talked American Electric Power Company, Inc. (NASDAQ:AEP) in its Q1 2022 investor letter, stating:

“About 5% of the portfolio is in transitioning power companies, typically migrating from coal to renewables. We have been active in encouraging these transitions and added a new position in American Electric Power (NASDAQ:AEP). AEP has the fastest planned renewable energy ramp in the U.S., with plans to both shrink coal and grow renewables by 50% each by 2030. This would drive an 80% emissions reduction, while supporting high single-digit earnings growth at a double-digit return.”