American Electric Power Needs Some Ideas

American Electric Power (AEP) is not going anywhere. With a market capitalization of $22.6 billion and an enterprise value of over $41 billion, AEP is the nation's sixth-largest investor-owned utility. It has strong and sustainable earnings. Its dividend is 4.2%, it has a healthy payout ratio of 78.7%, and it trades at a less-than-stratospheric price-to-earnings ratio of 18.8.

That is the crux of the company's problem: AEP is not going anywhere. This is an old utility with old ideas. Its management team seems transactional, and it seems to lack a strategy....631 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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