Home/News Feed/AEP funds $78B data center buildout with debt and stock, keeping dividends safe but growth slowing. American Electric Power (AEP) is investing $78 billion from 2026 to 2030 to support growing data center demand, funding this expansion mainly through borrowing and stock sales. Despite spending more cash than it generates, AEP maintains a dividend yield of about 3.1%, supported by earnings covering roughly 60% of dividends. Dividend increases continue but at a slower pace, reflecting the capital strain. Regulatory protections and contracted loads help secure the dividend, though risks like delayed data center projects and regulatory setbacks could impact future payouts. Overall, AEP's dividend appears durable but with smaller raises likely ahead.
American Electric Power (AEP) shares trade at USD 120.60 on Pluang as of Oct 07, 2026 00:32 WIB, showing a modest gain of 0.73% for the day. The stock holds a dividend yield of 3.17%, slightly above the article's cited 3.1%, reflecting steady income for investors. Market interest remains strong with 100% of Pluang orders on the buy side, indicating positive sentiment despite the company’s heavy investment phase.