$AEP (+1.14%) Brief introduction
American Electric Power
When the Central Power & Light Company was founded, American Electric Power was also founded in 1906. After several mergers, AEP is the result of the merger of CPL and OFS (Ohio Fuel Supply Company) in 1988.
Today, AEP is one of the largest electricity suppliers in the USA. The company operates a network of around 40,000 miles of overhead power lines and supplies more than 5 million customers in 11 US states (see picture).
The company's CEO and Chairman of the Board is Nicholas K. Atlins.
Sector: Utilities
AEP is an electricity supplier and therefore operates in the energy sector. The company is highly regulated and depends on the political and social environment. Following increasing energy demand in recent years, AEP is constantly trying to adapt new technologies.
AEP is divided into 4 business units.
AEP Transmission: Responsible for the operation of 40,000 miles of transmission lines and distribution from the power plants to the distribution companies and other businesses.
AEP Generation Resources: Providing reliable, affordable electricity generation from a variety of power plants using coal, gas, wind, hydro and solar energy.
AEP Distibution: Distribution operations that make it possible to deliver energy directly to customers.
AEP Energy Partners: Development of alternative energy sources. Provides technology solutions to meet the energy needs of large corporations.
Competition:
Duke Energy Corp. $DUK (-0.09%)
NextEra Energy $NEE (+0.7%)
Dominion Energy $D (-1.15%)
Also all large energy suppliers competing with each other for customers and market share.
Data 2023:
P/E RATIO: 14.47
P/E RATIO: 1.96
Expected turnover: approx. $20 bn.
Expected profit: approx. $2.7 bn.
Dividend: $3.17 (4.3%) over 4 payouts pa.
The dividend was first paid in 1986 and has been steadily increased since 2003. If it continues like this, the next Aristrocrat @Simpson 😉
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