Categories: Dividends

Utility Company Can Power Your Yield with Dividends

American Electric Power (NYSE: AEP) is a stock that investors may want to consider today because it offers an attractive 4.1 percent dividend yield and has been showing momentum by rising close to 8 percent so far this year when the market in general has fallen. The power company goes ex-dividend Thursday, so today offers the last chance for investors to buy the shares and still remain eligible to collect the dividend that will be paid later this month. The stock price actually is down about 1 percent in afternoon trading, you have an opportunity to buy it at a slight discount. Utility stocks typically offer stable income and a way to nab capital appreciation when volatility in the markets causes investors to look for safe havens.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.