AEP - American Electric Power Company, Inc.
| Previous Close | 90.08 |
| Open | 90.67 |
| Bid | 89.82 x 1400 |
| Ask | 89.82 x 1000 |
| Day's Range | 89.25 - 90.78 |
| 52 Week Range | 65.55 - 91.07 |
| Volume | 910,067 |
| Avg. Volume | 2,444,004 |
| Market Cap | 44.271B |
| Beta (3Y Monthly) | 0.15 |
| PE Ratio (TTM) | 21.67 |
| EPS (TTM) | 4.14 |
| Earnings Date | Jul 23, 2019 - Jul 29, 2019 |
| Forward Dividend & Yield | 2.68 (3.11%) |
| Ex-Dividend Date | 2019-05-09 |
| 1y Target Est | 86.19 |
- Markit•5 hours ago
See what the IHS Markit Score report has to say about American Electric Power Company Inc.
American Electric Power Company Inc NYSE:AEPView full report here! Summary * Perception of the company's creditworthiness is positive * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for AEP with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting AEP. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding AEP are favorable, with net inflows of $12.39 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS MarkitThere is no PMI sector data available for this security. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. AEP credit default swap spreads are near the lowest level of the last one year and indicate improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- Simply Wall St.•yesterday
Does American Electric Power Company, Inc.'s (NYSE:AEP) CEO Salary Compare Well With Others?
Nick Akins became the CEO of American Electric Power Company, Inc. (NYSE:AEP) in 2011. First, this article will...
- PR Newswire•yesterday
AEP Named One Of America's Best-in-State Employers By Forbes
COLUMBUS, Ohio , June 17, 2019 /PRNewswire/ -- American Electric Power (NYSE: AEP) has been included on the inaugural list of Forbes magazine's America's Best-in-State Employers 2019. AEP was identified ...
- PR Newswire•5 days ago
AEP Named a 2020 Women on Boards Winning Company
COLUMBUS, Ohio , June 13, 2019 /PRNewswire/ -- American Electric Power (NYSE: AEP) has been recognized by 2020 Women on Boards as a Winning "W" Company for having 20% or more board seats held ...
- InvestorPlace•6 days ago
7 U.S. Stocks to Buy With Limited Trade War Exposure
Global financial markets are in rally mode after the U.S. and Mexico struck an immigration agreement to avert tariffs between the two countries. But, the global trade war is far from over. The U.S. and China have struck no such deal, and as of this writing, the big and ugly trade war between those two countries projects to get even bigger and uglier.So long as this trade war hangs around, it will provide a drag on financial markets.But, it won't provide a drag on every stock. Not every company has exposure to China, trade and tariffs. Some companies are null to mitigated exposure to those things, and as such, won't be weighed down as much by a trade war. They will continue to report solid and healthy numbers, and their stocks will rally in response.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs such, these are the stocks you want to buy for the foreseeable future, or so long as the trade war persists. * 7 High-Quality Cheap Stocks to Buy With $10 Which stocks fall into this basket of stocks to buy for their limited trade war exposure? Let's take a closer look. Facebook (FB)Source: Shutterstock The great thing about Facebook (NASDAQ:FB) in the current environment is that you have a $70 billion services revenue business, growing at a 20%-plus rate, that is blocked in China. At the same time, FB stock trades at just 23-times forward earnings.That's a healthy combination that should power over-performance in FB stock so long as the trade war sticks around. To be sure, Facebook isn't entirely exempt from the trade war. The higher tariffs go, the higher prices go for U.S. corporations. Most of those corporations can't afford to pass price hikes onto consumers, so they will absorb the tariff hit. In order to offset that hit, they may look to cut down on spend, including cutting back the ad budget.But, even if that happens, the Facebook ad budget likely won't get cut. Smaller, more experimental ad channels, like Snap (NYSE:SNAP) or Pinterest (NYSE:PINS), could get hit. Facebook won't, though, because it's the tried-and-true digital ad channel.All in all, then, Facebook is well isolated from trade war risks, and the business is still growing at a 20%-plus rate while the stock trades at a relatively cheap multiple considering that 20%-plus growth. Ultimately, that makes FB stock a good buy here. Five Below (FIVE)Source: Shutterstock Retail is broadly a bad place to be during the trade war, since a majority of U.S. retailers source their product from countries with lower labor costs, with the biggest of those countries being China. As such, retailers are at the epicenter of tariffs on China imports.But, discount retailer Five Below (NASDAQ:FIVE) is different from other retailers. First, this is a U.S.-focused retailer, so all of its sales happen in the United States. Second, this is a very strong and popular retailer, with comparable sales consistently running positive for several years. Third, this is a hyper-growth retailer, as the company is growing its store base by about 20% per year.Fourth, and perhaps most importantly, Five Below has successfully leveraged price hikes and renegotiated supply contracts to offset the impact of tariffs. As a result, sales growth has remained healthy, margins have remained resilient and both of those dynamics project to persist for the foreseeable future. * 10 Stocks to Buy That Could Be Takeover Targets In the big picture, then, FIVE stock is a good buy here because this is a super strong retailer that is successfully side-stepping tariffs. American Electric Power (AEP)Source: Riccardo Annandale Via UnsplashThe trade war promises to bring economic and financial market volatility. When economic and financial market volatility are on the rise, investors do two things: they hunt for stability, and they hunt for yield.U.S. utility giant American Electric Power (NYSE:AEP) provides both of those things. American Electric Power is arguably one of the most stable public companies in America, as the company provides electricity services to millions of Americans, none of whom are going to stop paying for said electricity services anytime soon because they all need electricity to survive in the modern world. Meanwhile, AEP stock simultaneously offers investors a healthy 3% yield, which looks exceptionally attractive next to a depressed 10-Year Treasury yield and in the face of slowing corporate earnings growth.All in all, AEP stock looks good here as a defensive play for risk-adverse investors looking to mitigate volatility and trade war exposure. Netflix (NFLX)Source: Shutterstock Much like Facebook, the great thing about Netflix (NASDAQ:NFLX) in the current environment is you have a hyper-growth services business that is blocked in China.Netflix is at the epicenter of the secular growth, over-the-top video mega-trend, which is sweeping across the globe. As a result, Netflix is growing revenues at a robust 20%-plus rate, with rapidly expanding margins, too. Importantly, this growth narrative has zero exposure to China, since Netflix is outright blocked in China. * 7 High-Quality Cheap Stocks to Buy With $10 Overall, then, Netflix stock gives investors exposure to a secular, 20%-plus revenue growth story without any exposure to the volatile and trade-impacted Chinese market. Demand for that exposure will go up so long as the trade war sticks around. As such, so long as the trade war persists, so will the uptrend in NFLX stock. Alphabet (GOOG)Source: Shutterstock Global internet search giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) falls in the same boat as Facebook and Netflix -- it's a hyper-growth services company with zero exposure to China.Much like Facebook and Netflix, Alphabet is a 20%-plus growth internet company supported by secular growth tailwinds in global urbanization and digitization. At the same time, the company makes most of its revenues from its services businesses (digital ads and cloud), and very little revenue from the hardware businesses like Google Home. Also, Google search and YouTube -- the two cores of Alphabet -- don't exist in China.In other words, as is the case with Facebook and Netflix, Alphabet offers investors exposure to a secular, 20%-plus global internet growth narrative with limited trade, tariff and China exposure.That is the exact type of exposure investors will flock to so long as the trade war persists, meaning that GOOG stock should fare well even in the face of rising trade tensions. Shopify (SHOP)Source: Shopify via FlickrSticking in the secular growth services theme, next up we have e-commerce solutions provider Shopify (NYSE:SHOP).Shopify provides e-commerce solutions to retailers of all shapes and sizes, so that they can create online stores and have the tools to succeed in an omni-channel commerce world. This growth narrative has caught fire over the past several years as the sharing economy has gained mainstream traction, and as e-retail has become increasingly decentralized and democratized. This narrative projects to remain on fire, too, as Shopify still only accounts for a fraction of the global retail sales pie.The trade war won't impact this narrative at all. Even if tariffs go up a whole bunch, and retailers are looking at higher input costs, they won't pull their Shopify spend. Why? Because Shopify is the platform that makes everything work for these retailers. Without Shopify, they don't have the tools to succeed in the digital world. Without those tools, retailers will suffer, meaning subscription revenue projects to keep rising for a lot longer. At the same time, consumers won't stop shopping in the digital channel, so transaction revenue will continue to march higher, too. * 7 A-Rated Stocks to Buy Under $10 As such, regardless of which way the trade war plays out, Shopify's growth narrative should remain broadly robust for the foreseeable future. This sort of unstoppable growth narrative is the exact type of narrative investors want exposure to at this point in time. Okta (OKTA)Cloud identity platform Okta (NASDAQ:OKTA) falls into the same boat as Shopify. This is a secular growth, small-cap services company with tremendous momentum at the moment, and this momentum will not be derailed by trade disputes.In a nutshell, Okta sells a cloud security solution that enables individuals to securely sign into any enterprise software system. This unique method of tackling digital and cloud security has gained traction and popularity over the past several years. As it has, Okta's growth trajectory has accelerated higher. Last quarter, the company reported 50% revenue growth.The trade war won't disrupt this growth narrative. First, Okta is a services business with minimal exposure to China. Second, digital security is increasingly becoming the most important and central feature of any enterprise, so a U.S. economic slowdown likely won't impact security spend on platforms like Okta by that much.In total, Okta is a hyper-growth internet services company with mitigated trade exposure, and it's a company that provides high-value services with resilient demand. That's a winning combination in today's market.As of this writing, Luke Lango was long FB, PINS, FIVE, AEP, NFLX, GOOG, SHOP and OKTA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post 7 U.S. Stocks to Buy With Limited Trade War Exposure appeared first on InvestorPlace.
- InvestorPlace•6 days ago
3 Utility Stocks With Years of Dividend Growth
There's a lot on investor's plates these days. Issues with trade, lower economic data and the inverted yield curve are just a few of the problems everyone is facing today. As a result, many investors, especially older investors near or in retirement, have started think about portfolio security. Thankfully, utility stocks satisfy this growing need for safety … you just need to know the right ones to pick.For one thing, utility stocks generally feature stable earnings. Consumers need to heat their homes and keep the power on no matter what the economy is doing. Because of this, many utility stocks pay some hefty dividends. And those dividends can help lower volatility, reduce losses and provide a guaranteed return for investors.But not all utility stocks are cut from the same cloth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere have been some dividend blow-ups in the sector, as a few have become over-leveraged and focused on the wrong operating areas. That means investors must choose to buy utility stocks with long dividend histories -- through thick and thin -- to get the perceived safety of the sector. * 10 Smart Dividend Stocks for the Rest of the Year With that in mind, here are three utility stocks with years of dividend growth behind them. UGI Corp (UGI)Source: Mike Mozart via Flickr (Modified)Dividend Yield: 2.28%When it comes to utility stocks, the sector owes a few thanks to UGI Corporation (NYSE:UGI). The firm was the first to adopt the now commonplace utility holding company model. That is, holding a series of regulated assets -- like power generation and transmission lines -- to provide cash flows for investment in non-regulated ones. And as the "O.G." in that regard, UGI has become the master at it.For starters, UGI owns plenty of boring electric and gas operations in the Northeast. These utility holdings churn out plenty of steady cash flows for the utility. The trick is that UGI has smartly used these holdings to build-out an impressive system of tangential assets that provide much bigger profit potential. This includes natural gas pipelines and a global distribution network for liquefied petroleum gas (LPG). More recently, the firm simplified that structure by buying out all the units of its propane MLP AmeriGas (NYSE:APU).This wide-ranging asset base has been stellar for UGI's bottom line. Last year was one of the firm's best fiscal years ever and last quarter continued that growth. Because of the continued success of its holding company model, UGI has been able to pay a dividend for the last 135 years. Moreover, it has been able to raise its dividend for the last 32 years straight. The last increase was a whooping 15.4% jump.All in all, for investors looking at utility stocks, UGI needs to be at the top of your list. American Electric Power (AEP)Source: Riccardo Annandale Via UnsplashDividend Yield: 3.01%For utility stocks, size matters. A huge operating base means plenty of customers paying for service and that results in a stable base of cash for dividends to be paid out from. That is exactly what mega-utility American Electric Power (NYSE:AEP) does in spades.AEP is one of the largest electric companies in the entire country. The firm's 26,000 megawatts worth of generation capacity serves more than 11 states and 5.4 million customers. That's a lot of utility bills to pay. And it's that fact that keeps the lights on at AEP. Last year, American Electric managed to pull in more than $16 billion in revenues from its widespread operations.These revenues have continued to translate into solid earnings-per-share growth and dividend payments. AEP has paid a dividend since its founding in 1910 and since 2003, the utility stock has managed to increase its payout by 91%.The best part is, the dividends could keep growing. * 7 Stocks to Buy for the Coming Recession The problem for AEP has long been its reliance on coal. It's an old utility. But thanks to recent regulatory moves by the Trump Administration, AEP has more time to decommission and add new capacity to its umbrella. This will help prevent the firm from spending big to fix the problem instantly. That means there will be plenty of cash leftover for dividends. American Water Works Company (AWK)Source: Shutterstock Dividend Yield: 1.73%Often, investors will flock to electric or gas distributors when focusing on utility stocks. However, for long-term dividends, the water sector can't be beaten. Many of the top water utility stocks have been paying dividends since the 1800's. This includes American Water Works Company (NYSE:AWK).But AWK isn't like most water utilities. It's the water utility. The firm is the largest water utility providing clean water and wastewater services to more than 15 million people across 46 states and Canada. None of its rivals can match that size and scope. Because of this, AWK has been an earnings and dividend machine, especially over the last few years. Since 2014, EPS have grown at a compounded annual rate of 8.3%, while dividends have increased by over 10% annually.The best part is that American Water has a plan to boost that further.Given how essential it is for life, water utilities are some of the most regulated. However, AWK is undergoing a big spending spree to modernized and upgrade its grid. That spending is exactly what regulators like to see before granting an increase in rates. And given a lot of that spending is on tech upgrades to reduce waste, margins should be quite nice for AWK.That'll help turn its 1.75% yield into something greater.At the time of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post 3 Utility Stocks With Years of Dividend Growth appeared first on InvestorPlace.
- Insider Monkey•11 days ago
Here is What Hedge Funds Think About American Electric Power Company, Inc. (AEP)
Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients' money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth also depends on it. Regardless of the various methods used by elite investors like David Tepper and David […]
- InvestorPlace•12 days ago
7 Stocks to Buy That Don’t Care About Tariffs
May was a red month for global equities as escalating trade tensions and the worry of slowing economic growth pushed investors to sell risky assets and pile into the bond market. As a result, stocks fell sharply in May, while bonds rallied.But while the May market selloff was broad, it didn't take down every single stock in the market. Instead, there were a handful of stocks which actually rallied in May and recorded new all-time highs while the market was plunging.What was so special about this group of stocks? For one reason or another, these stocks just didn't and still don't care about tariffs. Some of these stocks are defensive in nature, so they rallied as investors tried to play defense. Others don't have much exposure to the trade war. And some of these stocks are supported by businesses with more than enough growth momentum to offset any trade-related weakness.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBroadly, these stocks ignored rising trade conflicts and marched higher.They will continue to do so for the foreseeable future. As such, as global trade conflicts stick around over the next few months, the smart move is to pile into the stocks which can head higher even against that dour backdrop. * 10 Stocks to Buy That Could Be Takeover Targets Which stocks are those? Let's take a deeper look at 7 stocks to buy that don't care about tariffs. Okta (OKTA)Investment Style: Secular Growth% Gain Since May 1: 17%At All-Time High? YesBull Thesis: You want to buy hyper-growth cloud company Okta (NASDAQ:OKTA) here because this is a secular growth stock with a robust growth narrative that simultaneously isn't slowing, lacks exposure to trade headwinds, and could actually benefit from a domestic economic slowdown.In a nutshell, Okta provides identity-based cloud security solutions for enterprises. This growth narrative is on fire right now (Okta reported 50%-plus revenue growth last quarter), and won't slow anytime soon. There are no trade headwinds here since Okta is a service business, and services have been exempt from trade talk thus far. Further, security spend is one thing that probably won't get hit in an economic slowdown, so this company's business model is fairly resilient to economic slowing.Overall, then, Okta is a red hot growth stock to buy now as it should remain red hot for the foreseeable future. American Electric Power (AEP)Source: Robert via FlickrInvestment Style: Defensive% Gain Since May 1: 5%At All-Time High? YesBull Thesis: With respect to utility giant American Electric Power (NYSE:AEP), AEP stock looks good here because this company is as stable as it gets, is relatively resilient to an economic slowdown, and lacks exposure to anything trade-related, while the stock's yield is big and increasingly attractive as fixed-income yields plunge.When it comes to operational stability, American Electric Power is second to none. The company provides electric services to U.S. consumers. Demand for those services will not wane anytime soon. Further, trade is a non-issue here, and the stock has a nice big 3% dividend yield, which is presently as far above the 10-Year Treasury yield as it has been since late 2017. * 7 Ways to Make Berkshire Hathaway Stock More Attractive Overall, AEP stock is a stable stock with a big yield, and as such, is a high quality defensive stock to buy in today's volatile market. Dollar General (DG)Source: Shutterstock Investment Style: Defensive & Stable% Gain Since May 1: 5%At All Time High? YesBull Thesis: You want to buy off-price retail giant Dollar General (NYSE:DG) here because the company is firing on all cylinders today and should continue to fire on all cylinders for the foreseeable future -- even if the U.S. economy slows meaningfully.Retail had a rough start to 2019. The consumer weakened in the first quarter of 2019, and retailers felt that weakening. Across the sector, retailers put up ugly first quarter 2019 numbers. Not Dollar General. The dollar store giant's first quarter numbers were really good. Why the discrepancy? Because although the consumer may have weakened in early 2019, the off-price retail strategy still worked, mostly because the consumer's affinity for lower prices doesn't go lower when times get tough.If anything, it goes up. As such, with economic turbulence on the horizon, Dollar General has visibility to gain share and traffic over the next few quarters. That makes DG stock a solid buy here. Coupa (COUP)Investment Style: Secular Growth% Gain Since May 1: 14%At All-Time High? YesBull Thesis: Hyper-growth cloud company Coupa (NASDAQ:COUP) looks good here because this company is firing on all cylinders right now with a solution that could become increasingly attractive in an economic slowdown and in a market supported by secular growth tailwinds which won't let up anytime soon.Coupa offers a cloud-based enterprise solution which is broadly aimed at helping companies become more efficient with their spend. Enterprises really like the Coupa solution. That's why this company has reported 30%-plus revenue growth for the past several quarters. Demand won't falter because of a slowing economy. If anything, a slowing economy will push demand higher since companies will increasingly want to optimize spend when dollars become more scarce. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% As such, this is a hyper-growth cloud company that should remain on a healthy growth trajectory for the foreseeable future. That makes COUP stock a good buy here. Coca-Cola (KO)Source: Chris Nielsen via FlickrInvestment Style: Defensive% Gain Since May 1: 5%At All-Time High? YesBull Thesis: When it comes to beverage giant Coca-Cola (NYSE:KO), you buy KO stock here for largely unparalleled defense to a global economic slowdown on top of a big yield which is becoming increasingly attractive as yields elsewhere plunge.Consumers need to drink. Regardless of the economic backdrop -- super fast growth, super slow growth, or something in the middle -- consumers across the globe need to drink. Coca-Cola is the heartbeat of the global beverage industry. As such, regardless of how the global economy develops over the next several quarters, Coca-Cola's numbers should remain largely stable and resilient to any slowdown. At the same time, KO stock has a juicy 3% dividend yield which is as far above the 10-Year Treasury Yield as it's been since mid-2017.Thus, in the big picture, Coca-Cola is a big and stable company with a big and stable yield. That combination makes KO stock a strong defensive stock to buy in volatile times. Shopify (SHOP)Source: Shopify via FlickrInvestment Style: Secular Growth% Gain Since May 1: 19%At All-Time High? YesBull Thesis: E-commerce solutions provider Shopify (NYSE:SHOP) is on fire right now, and you want to buy SHOP stock here because this fire won't die anytime soon, regardless of how the economic currents change.Shopify is enabling an entire new generation of individual and small-to-medium sized retailers to compete in the direct retail channel with the likes of Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN). This growth narrative has caught fire over the past few quarters as the e-retail market has become increasingly decentralized. This fire won't die anytime soon. The secular growth narrative of Shopify pioneering a new era of decentralized direct retail is simply too powerful to be weighed down by tariffs. That's why this company reported 50% gross merchandise sales growth last quarter in the face of tariffs. * The 10 Best Stocks for 2019 -- So Far So long as this secular growth narrative maintains robust momentum, SHOP stock will continue to march higher. Roku (ROKU)Source: Shutterstock Investment Style: Secular Growth% Gain Since May 1: 60%At All Time High? YesBull Thesis: You want to buy OTT video platform Roku (NASDAQ:ROKU) here because the company's secular growth narrative is powerful enough to offset slowing economic growth headwinds, and such headwinds could actually provide a lift to the company's user growth.The big idea at Roku is that this company is becoming the cable box of the OTT video world. That world is rapidly growing, and it won't stop growing because of an economic slowdown. If anything, growth will be supercharged by a slowdown. Consumers will finally be moved to cut expensive cable packages in bulk, and pivot towards much cheaper streaming options. Thus, the Roku growth narrative is not jut red hot right now, but could actually get even hotter if the economy slows.Because of this, Roku stock looks good here. You have a stock that's firing on all cylinders without any material headwinds on the horizon.As of this writing, Luke Lango was long OKTA, AEP, DG, SHOP, WMT, AMZN, and ROKU. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post 7 Stocks to Buy That Don't Care About Tariffs appeared first on InvestorPlace.
- Zacks•12 days ago
Smartsheet (SMAR) Q1 Earnings and Revenues Beat Estimates
Smartsheet (SMAR) first-quarter fiscal 2020 results benefit from customer wins and growth in business value.
- InvestorPlace•15 days ago
6 Big Dividend Stocks to Buy as Yields Plunge
A lot happened in financial markets in May. One of the more important things that happened was in the bond market. Fixed income yields plunged in May on concerns that the global economy is slowing and will continue to slow as trade tensions between the U.S. and China remain elevated. Specifically, the 10-Year Treasury Yield has dropped below 2.3% in late May, after peaking right around 3.3% in late 2018, and is now at its lowest level since late 2017.One implication of plunging yields is that stocks with big dividend yields become more attractive. Why? Because the lower yields go, the higher dividend yields are relative to those fixed income yields. Thus, when yields plunge, investors tend to flock into dividend stocks with big yields. * 7 Bank Stocks to Leave in the Vault Because of this dynamic, plunging yields create a good opportunity to buy into dividend stocks with big yields. Which stocks should be on your list of stocks to buy? Let's take a look at six big dividend stocks to consider as yields plunge.InvestorPlace - Stock Market News, Stock Advice & Trading Tips AT&T (T)Source: Shutterstock Yield: 6.4%First, we have telecom giant AT&T (NYSE:T), a company with an unparalleled yield and enormous financial stability.There are three big reasons to like AT&T here. The first reason is that the stock has a big 6.4% dividend yield, which is nearly triple the yield on a 10-Year Treasury Note and above the yield of most every other notable stock. The second reason is that the company provides telecommunications services with enduring and stable demand, and long-term revenues and profits have significant visibility. And, the third and final reason is that the forthcoming 5G boom in 2019/20 should provide a nice lift to the company's numbers, which should push estimates higher and drive multiple expansion.Thus, with a big yield, healthy stability and strong catalysts, AT&T stock looks like it can and should move higher over the next few months. This is especially true against the backdrop of plunging yields, since that dynamic makes AT&T's 6.4% yield seem that much more attractive. American Electric Power (AEP)Source: Robert via FlickrYield: 3.1%In terms of big yield coupled with stability, the cream of the crop in the stock market is utility giant American Electric Power (NYSE:AEP).American Electric Power is an electric utility company that delivers electricity and power services to more than 5 million customers across 11 states. Demand for these services is inelastic relative to economic changes -- regardless of the macroeconomic backdrop, consumers will need and pay up for electricity and power services, especially in today's digitally connected world. Consequently, there is largely unparalleld financial stability inherent to the AEP story.But, AEP is much more than just stability. The company has a solid track record of growing revenues and profits through price hikes and market expansion. There's also a 3.1% dividend yield on the stock, too, which is more than 80 basis points above the 10-Year Treasury yield. * 7 Stocks to Sell Impacted by the Mexican Tariffs All in all, then, if you're looking for a big yield with a lot of stability, AEP is the way to go. Coca-Cola (KO)Source: Leo Hidalgo via Flickr (Modified)Yield: 3.2%If you're hunting for yield but don't want to compromise on long-term profit growth, a solid option is beverage giant Coca-Cola (NYSE:KO).Coca-Cola has been on the mountain top of the global beverage market for what seems like forever. That's because this company has found a winning strategy that keeps Coca-Cola the most relevant player in the market. This strategy includes identifying hot and upcoming beverage trends, acquiring the hottest players in that market, and giving those players global distribution. This strategy broadly ensures that Coca-Cola grows with the global beverage industry by capitalizing on every relevant trend.This industry will continue to grow at a healthy low to mid single-digit rate over the next several years. Coca-Cola will grow revenues and profits in line with that rate. Meanwhile, there's a 3.2% yield here, so investors will get slow and steady profit growth on top of a healthy yield.Overall, KO stock looks good here for investors hunting for yield and growth at the same time. Target (TGT)Source: Mike Mozart via Flickr (Modified)Yield: 3.2%The retail sector has been getting hammered recently, but one big retail company that has weathered the storm and has a big yield, too, is Target (NYSE:TGT).To be clear, Target is not mall retail. Mall retailers are getting killed in early 2019 as the entire sector has reported broadly disappointing numbers. But, Target is not a part of that group. Target is an off-mall, off-price, all-in-one retailer with a rapidly growing e-commerce business and rapidly expanding omni-channel presence. Because of this, Target is not being hurt by the e-retail wave. Instead, Target has aligned itself with this trend, and is now firing off decade-best growth numbers.This will persist because Target is just getting the ball rolling on the omni-channel front. Target is still building out delivery and pick-up options everywhere, and as those capabilities expand, Target's growth will remain red hot. Margins will stabilize as wage hike initiatives move into the rear-view mirror. Thus, revenue and profit growth project to be healthy for the foreseeable future. * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right Meanwhile, TGT stock has a 3.2% yield which will help supercharge returns for investors. As such, much like Coca-Cola, Target offers investors a nice mix of yield and growth. International Business Machines (IBM)Source: Shutterstock Yield: 4.9%The technology revolution has seemingly moved past International Business Machines (NYSE:IBM), but this company is getting its act together, and the stock has a huge yield and should do well here as yields plunge.IBM doesn't exactly have that growth sparkle that many of its faster growing tech peers do. Even the company's cloud business has stalled out over the past several quarters. But, the company has acquired Red Hat, and in so doing, will add some sparkle into this growth narrative and juice up the growth rates. This extra juice in the growth narrative, coupled with a near 5% yield against the the backdrop of a 2.3% 10-Year Treasury yield, creates a favorable dynamic for IBM stock to head higher from here.To be clear, IBM stock isn't the type of stock you want to buy and hold forever. But, with yields on the comedown and the company's growth rates on the come-up, this stock should do well for the foreseeable future. Qualcomm (QCOM)Source: Shutterstock Yield: 3.8%Last, but not least, on this dividend stocks to buy list is chip giant Qualcomm (NASDAQ:QCOM).QCOM stock has been on a roller coaster ride over the past several weeks. First, there was the huge Apple (NASDAQ:AAPL) settlement, which caused the stock to soar on the fact that Apple revenue was coming back into the system for the foreseeable future. But, that rally was ultimately short-circuited by a negative FTC ruling, which basically said that Qualcomm's patent licensing practices need to change because they violate antitrust law. QCOM stock dropped big on that news.But, in the big picture, the Qualcomm narrative is improving. The 5G boom is right around the corner, and Apple waving the white flag with Qualcomm basically says that Qualcomm is the only relevant 5G chip supplier. Further, the Apple deal does bring in a bunch of Apple revenue over the next several years. The FTC ruling is a negative, but that story still isn't finished, and the near term, tangible financial impact is relatively muted. * 5 Stocks Under $10 With Big Upside Potential Consequently, QCOM stock should rebound here, mostly because the fundamentals are improving, but also because the stock's 3.8% yield looks really attractive next to a 2.3% 10-Year Treasury yield.As of this writing, Luke Lango was long T, AEP, TGT and QCOM. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right * 7 Bank Stocks to Leave in the Vault * 7 Stocks for You to Profit From (Legal) Insider Trading Compare Brokers The post 6 Big Dividend Stocks to Buy as Yields Plunge appeared first on InvestorPlace.
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5 Utility Stocks to Buy for an Extra Durable Portfolio
[Editor's note: This story was originally published in September 2018. It has since been updated and republished.]Utility stocks were supposed to be yesterday's favorite investment. The theory regarding utility stocks was simple: Robust economic growth coupled with a full labor market was supposed to spark rising inflation. The Fed was supposed to fight rising inflation with rate hikes. Fixed income yields were supposed to rise. Utility stocks, which were long viewed as bond substitutes in an era of ultra-low interest rates, were supposed to fall.But that theory hasn't fully materialized into reality.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe result? Utility stocks haven't lost their shine. With inflation relatively contained and investors ducking into safety, stocks in utilities are still attractive assets to own for yield hunters. That is why the Utilities Select Sector SPDR ETF (NYSEARCA:XLU) finished the past month up 2.3%.compared to the S&P 500's loss of 83 basis points.The markets' recent volatility has contributed to the XLU's gain, as investors flee toward any safe haven. Not to mention, a number of other catalysts are in play. Inflation isn't soaring higher because technology giants are suppressing inflationary pressures (just think about the downward pressure Amazon (NASDAQ:AMZN) is putting on all consumer goods prices). This trend won't reverse any time soon, and thus, inflationary pressures should remain subdued for the foreseeable future. With those forces subdued, utility stocks have room to rally. * Top 7 Dow Jones Stocks of 2019 -- So Far With that said, what are the best utility stocks to buy for your portfolio? Here's a list of five stocks that I think are worth a look: American Electric Power (AEP)Considered one of the industry's heavyweights, American Electric Power (NYSE:AEP) is a massive electric utility company that delivers electricity to more than 5 million customers across eleven states. Over the past month, AEP stock is up just shy of 3%.The business right now is doing pretty well, as robust economic strength in the company's core markets has boosted the business. Overall, sales and earnings are both trending higher at a healthy rate. Sempra Energy (SRE)Another one of the industry's heavyweights is Sempra Energy (NYSE:SRE), the multi-faceted energy company that provides energy services to more than 40 million customers globally across Southern California, Texas, Chile and Peru. In the past month, SRE stock is up 2.6%.Sempra's business is doing well: Both revenues and earnings are trending higher amid a favorable economic backdrop. Plus, the company is continuing its energy diversification efforts by expanding its liquid natural gas (LNG) business, something which the company feels can help fuel sustainable long-term growth. * 10 Baby Boomer Stocks to Buy The dividend yield on SRE stock sits right around 2.96%. That isn't great, but it's right around where the yield has been over the past several years. Duke Energy (DUK)Next up is electric power and gas utility giant Duke Energy (NYSE:DUK). Much like the other names on this list, Duke's operations are stable and healthy. That said, DUK stock is down 3% over the past month. That's contributed to an increased dividend yield, at 4.3%.Business remains fine, despite DUK's downturn, mostly thanks to favorable weather and strengthening economic conditions. And Duke's revenues and earnings have been trending consistently higher at a slow and stable rate.This level of growth should persist for the next several years as economic conditions remain solid. American Water Works Company (AWK)Although electricity and power are very important utilities, another utility of equal importance is water, and that is where American Water Works Company (NYSE:AWK) comes into the picture.American Water provides waters services to 15 million people across 46 states and Canada. That makes American Water the largest and most diverse publicly traded water company. Moreover, American Water is planning on spending a whole bunch of money over the next several years to modernize water distribution infrastructure, an investment that will likely lead to rate hike approvals and robust long-term earnings growth. * 7 Stocks to Buy that Lost 10% Last Week AWK stock has a dividend yield of 1.8%. That isn't great. But, what the company lacks in dividend yield, it makes up for in earnings growth, which should be able to run around 10%-per-year for the next several years. That combination of healthy earnings growth and stable yield should make AWK stock a winning investment. NextEra Energy (NEE)Perhaps the utility stock with the most long-term earnings-growth potential on this list is NextEra Energy (NYSE:NEE). That is because not only does NextEra operate a massive utility business like the other utility players on this list, but the company is also a leading player in renewable energy and battery storage.Over the past decade, this company has grown earnings and dividends at an 8%-per-year clip, and that robust growth should continue so long as the company's renewable business continues to scale.The one thing to be worried about when it comes to NEE stock is that the dividend yield is at 2.52%, which is a five-year low. But, earnings growth is robust, and it is large enough to compensate for a historically low dividend yield.As of this writing, Luke Lango was long AMZN and AWK. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post 5 Utility Stocks to Buy for an Extra Durable Portfolio appeared first on InvestorPlace.
