How Much Would It Take To Earn $100 A Month From American Electric Power Stock

American Electric Power Co. AEP is an electric public utility holding company that generates, transmissions, and distributes electricity for sale to retail and wholesale customers in the U.S.

The 52-week range of AEP stock price was $85.93 to $110.48.

AEP's dividend yield is 3.63%. It paid $3.72 per share in dividends during the last 12 months.

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The Latest On AEP

On May 6, the company announced its Q1 2025 earnings, posting revenues of $5.46 billion, beating the consensus of $5.17 billion, as reported by Benzinga. Adjusted EPS of $1.54 came in above the consensus estimate of $1.40.

The company reaffirmed its full-year 2025 outlook, expecting adjusted EPS in the range of $5.75 to $5.95, compared to the consensus estimate of $5.87. The company continues to see a long-term growth rate outlook of 6% to 8%.

How Can You Earn $100 Per Month As An AEP Investor?

If you want to make $100 per month — $1,200 annually — from AEP dividends, your investment value needs to be approximately $33,058, which is around 322 shares at $102.53 each. 

Understanding the dividend yield calculations: When making an estimate, you need two key variables — the desired annual income ($1,200) and the dividend yield (3.63% in this case). So, $1,200 / 0.0363 = $33,058 to generate an income of $100 per month.

You can calculate the dividend yield by dividing the annual dividend payments by the current price of the stock.

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The dividend yield can change over time. This is the outcome of fluctuating stock prices and dividend payments on a rolling basis.

For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40).

In summary, income-focused investors may find AEP stock an attractive option for making a steady income of $100 per month by owning 322 shares of stock. There may be more upside to come as investors benefit from the company's consistent dividend hikes. AEP has raised its dividend consecutively for the last 15 years. 

Check out this article by Benzinga for three more stocks offering high dividend yields. 

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