American Electric Power: Waiting For A Better Price
The electric utility's operating EPS payout ratio will only slightly expand from 63.3% in 2021 to 63.8% in 2022. American Electric Power delivered 7% operating revenue growth in the first quarter, while its operating EPS advanced 6.1% higher year-over-year during the quarter. The company's pension funding coverage improved from 105% in 2021 to 106% in the first quarter. The stock has swung from somewhat undervalued to 9% overvalued since the publication of my previous article. American Electric Power's 3% yield, 6% to 7% annual earnings growth, and 1% annual valuation multiple contraction will lead to 8% to 9% annual total returns over the next decade.
