Approving an increase in the quarterly cash dividend paid to shareholders, utility operator American Electric Power (AEP 0.96%) announced today that its board of directors approved a 4% increase in its quarterly cash dividend from $0.47 to $0.49 per share.
The utility has paid a dividend every single quarter since 1910. The new, higher payment will be made on June 10 to stockholders of record as of May 10.
American Electric Power president and CEO Nicholas K. Akins said: "This change reflects our continued commitment to increase shareholder value and achieve payout ratios that are in line with our regulated peers. We understand how important strong dividends are to an investor's portfolio and are grateful for the ongoing focus and diligence of our employees, which has allowed us to maintain our financial strength and reward our investors with solid returns for 412 consecutive quarters."
AEP delivers electricity to more than 5.3 million customers in 11 states, ranking it among the nation's largest generators of electricity. It owns nearly 38,000 megawatts of generating capacity in the U.S. and also owns the nation's largest electricity transmission system, a 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.