AEP

AI's power surge is creating a major growth opportunity for utilities, and ETFs like IDU offer diversified exposure to the trend.

Three well-known dividend payers share a single deadline this week. SiriusXM (NASDAQ:SIRI | SIRI Price Prediction), American Electric Power (NASDAQ:AEP), and Timberland Bancorp (NASDAQ:TSBK) all go ex-dividend on Monday, August 10.

American Electric Power remains a buy, driven by 69 GW of contracted load and a $78B capital plan supporting robust rate-base growth. Management raised FY2026 operating EPS guidance to $6.25–$6.55, reaffirming 7%-9% annual growth and targeting >9% CAGR through 2030. Contracted demand, especially from data centers, is increasingly formalized with strong regulatory and collateral protections, minimizing counterparty risk.

American Electric Power missed Q2 EPS estimates, but I do not think it impacts the overall investment thesis and the growth story for the next 5 years. AEP's forward guidance reflects confidence in continued demand and operational stability. The stable dividends and predictable cash flows remain attractive, but the valuation indicates a significant growth premium.

American Electric Power highlights rising demand, a $78B capital plan and new generation capacity as it targets long-term infrastructure growth.

American Electric Power remains a buy, supported by robust fundamentals and exposure to surging AI-driven power demand. AEP raised its 2026 EPS guidance to $6.25–$6.55 and expanded contracted load to 69 GW, reinforcing growth momentum. Despite trading at a premium valuation (20.22x forward P/E), AEP's profitability and capital plan justify the multiple and support double-digit upside potential.

American Electric Power Company, Inc. (AEP) Q2 2026 Earnings Call Transcript

AEP's Q2 earnings miss estimates as tax timing and a prior transaction weighed despite 7% revenue growth and raised 2026 guidance.

American Electric Power NASDAQ: AEP raised its 2026 operating earnings guidance after reporting second-quarter operating earnings of $1.36 per share, or $742 million, as the utility highlighted rising contracted large-load demand, regulatory progress and an expanding pipeline of generation and transmission investments.

Although the revenue and EPS for AEP (AEP) give a sense of how its business performed in the quarter ended June 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.