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amassafortune (29.16)

AEP Near Fukushima Price Level

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August 08, 2011 – Comments (1) | RELATED TICKERS: AEP

Near today's $35.00 level, it is my opinion that American Electric Power is a pretty good bargain. Its 5%+ dividend has little risk of being lowered. That rate beats most U.S.-backed notes, bonds, and bills, and in my opinion, has more credit worthiness. At least when AEP's board meets, the members' varied opinions are hashed out and the result is a solvent, profit producing strategy - not losses incurred at a slower rate.

The need for electric power is as constant as gold is money. Customer demand will be more stable than for most companies entering what may be another economic downturn.

AEP completed a nearly 10% early retirement buyout 12 months ago, The resulting leaner workforce is well-poised to respond to its mostly mid-west customer demand and any business challenges that could pop up in these historic times. 

Disclosure: I owned some AEP already and added to the position today. I expect the S&P to drop another 100 points after a near-term bounce, and plan to add again to AEP at that time.

1 Comments – Post Your Own

#1) On December 27, 2011 at 2:22 PM, amassafortune (29.16) wrote:

Almost 5 months later and up nearly 20%, plus 2.5% of invested funds paid back as dividends over the past two quarters. 

I expect AEP will outperform in 2012, but at $41.60 today, it is not likely to match the 23% payback since this call was made on 8/8/11. 

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