How Much Would It Take To Earn $100 A Month From American Electric Power Stock
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American Electric Power Company, Inc. (NASDAQ:AEP), an electric public utility holding company, generates, transmits and distributes electricity for sale to retail and wholesale customers in the United States.
It will report its Q4 2024 earnings on February 13. Wall Street analysts expect the company to post an EPS of $1.29, up from $1.23 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $4.74 billion, up from $4.60 billion in the year-ago period.
The 52-week range of American Electric Power’s stock price was $75.22 to $105.17.
American Electric Power’s dividend yield is 3.83%. During the last 12 months, it paid $3.72 per share in dividends.
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On Nov. 6, 2024, the company announced its Q3 2024 earnings, posting revenues of $5.42 billion, missing the consensus of $5.434 billion, as reported by Benzinga.
Commercial load increased more than 10% year over year through the third quarter. Based on customer contracts signed so far, the company projects commercial load to grow an average of 20% annually over the next three years.
American Electric Power narrowed its 2024 adjusted operating earnings per share guidance from $5.53 – $5.73 to $5.58 – $5.68 vs. the consensus of $5.62. The company sees 2025 adjusted EPS of $5.75 – $5.95 vs. the consensus of $5.98. The company now expects a long-term growth rate outlook of 6% to 8% (vs. 6% to 7% prior).
If you want to make $100 per month – $1,200 annually – from American Electric Power dividends, your investment value needs to be approximately $31,332, which is around 322 shares at $97.25 each.
Understanding the dividend yield calculations: When estimating, you need two key variables – the desired annual income ($1,200) and the dividend yield (3.83% in this case). So, $1,200 / 0.0383 = $31,332 to generate an income of $100 per month.
You can calculate the dividend yield by dividing the annual dividend payments by the stock’s current price.
The dividend yield can change over time due to 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 American Electric Power stock an attractive option for earning a steady $100 per month by owning 322 shares of stock.
Check out this article by Benzinga for three more stocks offering high dividend yields.
