American Electric Power Company, Inc. (AEP) Yield on Cost (YOC): 2.96%
The yield on cost (YOC) for American Electric Power Company, Inc. (AEP) is 2.96%.
AEP Yield on Cost (YOC) Metrics
YIELD ON COST (YOC)
2.96%
Forward Yield on Cost Projections
If you buy AEP today at the current stock price of $127.76 with a yield of 2.96% and dividends continue to grow at the historical rate (5.7% CAGR), your YOC would be:
Current Yield
2.96%
YOC in 3 Years
3.69%
YOC in 5 Years
4.27%
YOC in 10 Years
6.17%
Interactive Yield on Cost Calculator
Project custom investment returns for American Electric Power Company, Inc. (AEP) based on your custom cost basis.
Starting Yield
2.96%
Ending YOC
6.76%
Year 15 Dividend
$8.63
Cum. Dividends Recd.
$90.59
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $3.78 | — | 2.96% | $0.00 |
| Year 1 | $3.99 | +5.66% | 3.13% | $3.99 |
| Year 2 | $4.22 | +5.66% | 3.30% | $8.21 |
| Year 3 | $4.46 | +5.66% | 3.49% | $12.67 |
| Year 4 | $4.71 | +5.66% | 3.69% | $17.38 |
| Year 5 | $4.98 | +5.66% | 3.90% | $22.36 |
| Year 6 | $5.26 | +5.66% | 4.12% | $27.62 |
| Year 7 | $5.56 | +5.66% | 4.35% | $33.18 |
| Year 8 | $5.87 | +5.66% | 4.60% | $39.05 |
| Year 9 | $6.20 | +5.66% | 4.86% | $45.25 |
| Year 10 | $6.56 | +5.66% | 5.13% | $51.81 |
| Year 11 | $6.93 | +5.66% | 5.42% | $58.74 |
| Year 12 | $7.32 | +5.66% | 5.73% | $66.06 |
| Year 13 | $7.73 | +5.66% | 6.05% | $73.79 |
| Year 14 | $8.17 | +5.66% | 6.40% | $81.96 |
| Year 15 | $8.63 | +5.66% | 6.76% | $90.59 |
Yield on Cost (YOC) Formula
Formula: Yield on Cost = Annual Dividend / Original Purchase Price × 100
Inputs shown in the projection:
- Original purchase price.
- Annual dividend per share at the starting point.
- Assumed annual dividend growth rate.
- Projected annual dividend divided by original purchase price.
Note: Forward projections assume dividends continue to grow at the designated growth rate. Actual dividend payments are declared by corporate boards and are subject to change.
American Electric Power Company, Inc. Yield on Cost (YOC) Formula & Definition
Yield on Cost shows the dividend yield based on your original purchase price. As dividends grow, your YOC increases even if the market yield stays the same.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
American Electric Power Company, Inc. Yield on Cost (YOC) FAQ
- What is the yield on cost (YOC) for American Electric Power Company, Inc. (AEP)?
- The yield on cost (YOC) for AEP stock is 2.96%.
About American Electric Power Company, Inc.
American Electric Power Company, Inc. (AEP) operates as a prominent electric utility holding company, with its core business encompassing the generation, transmission, and delivery of electricity. Serving both retail and wholesale clients across the United States, AEP organizes its extensive operations into several key segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. The firm produces its electrical power from a diverse portfolio of energy sources, including coal, lignite, natural gas, nuclear, hydroelectric, solar, and wind power, alongside other emerging technologies. Beyond direct consumer sales, AEP also functions as a major wholesale electricity supplier, providing power to other utility companies, rural electric cooperatives, municipalities, and various other participants within the energy market. Incorporated in 1906, the company's corporate headquarters are situated in Columbus, Ohio.
- Sector
- Utilities
- Industry
- Regulated Electric
- CEO
- William J. Fehrman