Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 3.03%.
YIELD ON COST (YOC)
3.03%
AEP now pays $3.80 per share a year. Measured against the price it actually traded at back then, a long-term holder is earning:
| If you bought | Price then | Yield on cost today |
|---|---|---|
| 10 years ago(2016-09-06) | $66.04 | 5.75% |
| 5 years ago(2021-09-14) | $87.83 | 4.33% |
| 3 years ago(2023-09-05) | $76.00 | 5.00% |
| 1 year ago(2025-09-09) | $108.36 | 3.51% |
| Buying today(at $125.21) | $125.21 | 3.03% |
Projection: starting from today's 3.03% yield, assuming the dividend keeps compounding at 5.6% a year — the recent growth rate of its annual payout. Boards set dividends each year, so actual figures will differ.
Today
3.03%
In 3 years
3.57%
In 5 years
3.99%
In 10 years
5.26%
Try your own purchase price, dividend and growth rate for American Electric Power Company, Inc. (AEP).
Starting Yield
3.04%
Ending YOC
6.93%
Year 15 Dividend
$8.68
Cum. Dividends Recd.
$91.07
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $3.80 | N/A | 3.04% | $0.00 |
| Year 1 | $4.02 | +5.66% | 3.21% | $4.02 |
| Year 2 | $4.24 | +5.66% | 3.39% | $8.26 |
| Year 3 | $4.48 | +5.66% | 3.58% | $12.74 |
| Year 4 | $4.74 | +5.66% | 3.78% | $17.48 |
| Year 5 | $5.00 | +5.66% | 4.00% | $22.48 |
| Year 6 | $5.29 | +5.66% | 4.22% | $27.77 |
| Year 7 | $5.59 | +5.66% | 4.46% | $33.35 |
| Year 8 | $5.90 | +5.66% | 4.71% | $39.26 |
| Year 9 | $6.24 | +5.66% | 4.98% | $45.49 |
| Year 10 | $6.59 | +5.66% | 5.26% | $52.08 |
| Year 11 | $6.96 | +5.66% | 5.56% | $59.05 |
| Year 12 | $7.36 | +5.66% | 5.88% | $66.40 |
| Year 13 | $7.77 | +5.66% | 6.21% | $74.18 |
| Year 14 | $8.21 | +5.66% | 6.56% | $82.39 |
| Year 15 | $8.68 | +5.66% | 6.93% | $91.07 |
Yield on cost is the dividend yield measured against your original purchase price, not today's price. As a company raises its dividend, the yield on what you actually paid keeps rising even when the market yield holds steady.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
