Here’s How You Can Earn $100 In Passive Income By Investing In American Electric Power Sto

October 6, 2025

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American Electric Power Company Inc. (NASDAQ:AEP) is one of the largest electric utility holding companies in the U.S., providing electricity generation, transmission, and distribution services to over five million customers in 11 states.

It will report its Q3 2025 earnings on Nov. 1. Wall Street analysts expect the company to post EPS of $1.87, up from $1.85 in the prior-year period. According to data from Benzinga Pro, quarterly revenue is expected to be $5.67 billion, up from $5.40 billion a year earlier.

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The 52-week range of American Electric Power stock price was $89.95 to $115.35.

American Electric Power’s dividend yield is 3.28%. It paid $3.72 per share in dividends during the last 12 months.

The company on July 30 announced its Q2 2025 earnings, posting adjusted EPS of $1.43, compared to the consensus estimate of $1.23, and revenues of $5.08 billion, compared to the consensus of $4.84 billion, as reported by Benzinga.

“Our record second-quarter results reflect the strength of our customer-focused strategy and the dedication of our teams across the company,” said CEO Bill Fehrman.

The company confirmed its full-year 2025 operating earnings guidance range of $5.75 to $5.95 per share and long-term growth rate of 6% to 8%.

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If you want to make $100 per month — $1,200 annually — from American Electric Power dividends, your investment value needs to be approximately $36,585, which is around 321 shares at $114.06 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 (3.28% in this case). So, $1,200 / 0.0328 = $36,585 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 American Electric Power stock an attractive option for making a steady income of $100 per month by owning 321 shares of stock. There may be more upside to come as investors benefit from the company’s consistent dividend hikes. American Electric Power has raised its dividend consecutively for the last 15 years.

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This article Here’s How You Can Earn $100 In Passive Income By Investing In American Electric Power Stock originally appeared on Benzinga.com

 

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