This Dividend Stock Yielding Almost 3% Is Outperforming In 2026: Should You Buy?

Core Viewpoint - American Electric Power Company (AEP) stock has gained over 14% year-to-date, outperforming the market, and offers a strong dividend yield of 2.88% despite geopolitical tensions [1][5]. Group 1: Company Performance - AEP is a regulated utility with predictable earnings and is one of the largest electricity producers in the U.S., with a generating capacity of 29,000 megawatts [4]. - The company owns and operates nearly 90% of the 765 kV transmission infrastructure in the U.S., which is set to expand with new project awards [4]. - AEP's Q4 2025 operating earnings per share was reported at $5.97, slightly above guidance, with expectations for 2026-2030 annualized growth of 7%-9% [5]. Group 2: Market Demand and Growth Drivers - AEP's growth is significantly driven by increasing demand from data centers, particularly due to the rise of artificial intelligence infrastructure [6]. - The company is also benefiting from industrial capital expenditures in its service areas, including supplying power to Nucor's steel mill in West Virginia [6]. - AEP has doubled its 2030 additional contracted load forecast to 56 gigawatts, indicating strong demand from large customers [5].