In short, AEP is a holding company and their public utility subsidiaries include Appalachian Power Company (APCo), Columbus Southern Power Company (CSPCo), Indiana Michigan Power Company (I&M), Kentucky Power Company (KPCo), Kingsport Power Company (KgPCo), Ohio Power Company (OPCo), Public Service Company of Oklahoma (PSO), Southwestern Electric Power Company (SWEPCo), AEP Texas Central Company (TCC), AEP Texas North Company (TNC), Wheeling Power Company (WPCo) and AEP Generating Company (AEGCo). The service areas of AEP’s public utility subsidiaries cover portions of the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. The subsidiaries of AEP provide electric service, consisting of generation, transmission and distribution, on an integrated basis to their retail customers.
The management of this utility has remained cautious and not made any big mistakes. They are ahead of the game in reducing coal-fired emissions. Generating surplus will add to their bottom line. Their CEO recently reaffirmed AEP's 2011 ongoing earnings guidance of $3.07 to $3.17 per share. Their great dividend and stable business model will drive your Roth IRA stock portfolio sky high. AEP is a bargain at these levels!
Hold this stock for 30 years, continue to invest as much as you can each week and reinvest those dividends! Some say utility stocks are boring, well think of AEP as a slow moving elephant. Once it picks up speed you can't stop it!
Feel free to visit AEP's homepage here, and their Investor Relations website here. Also, watch these three videos below. It may seem like I am bullish on most dividend paying stocks, but that's not true. I seek out only those dividend payers which I believe will be around for the next 30 to 50 years, which, for most reading this blog, is our current working/retirement timeline. Thanks for your time. Have a great upcoming Friday!