10 Best Clean Energy Stocks According to Reddit

7. American Electric Power (NASDAQ:AEP)  

Number of Hedge Fund Holders: 35  

Market Capitalization as of September 4: $54.46 Billion

American Electric Power (NASDAQ:AEP) is one of the largest electric utilities in the United States and distributes electricity through its vast network of power plants, transmission, and distribution lines to over 5 million customers across 11 states.

American Electric Power’s (NASDAQ:AEP) focus on clean energy investments has emerged it as a key player in the evolving energy landscape, especially with the rise in electricity demands driven by generative AI and data centers. American Electric Power (NASDAQ:AEP) stands to benefit from this demand, especially as large corporations continue to increase their capital expenditures on data centers. For instance, Amazon, Microsoft, Google, and Meta are projected to collectively invest $150 billion annually in data center infrastructure. The demand for electricity is expected to surge, with data centers contributing almost 30% of this growth. Blackstone estimates that investments in generative AI-related data centers could approach $2 trillion over the next five years. American Electric Power (NASDAQ:AEP) expects to expand its clean energy business by a 15-20% annual growth rate.

American Electric Power’s (NASDAQ:AEP) consistent dividend growth remains a key attraction for investors. The company has increased its dividend by an average of 5.6% over the past five years and aims for an 8% growth rate over the next years. As of the second quarter, the stock is held by 35 hedge funds and the stakes amount to $1.57 billion. GQG Partners is the largest shareholder in the company with stocks worth $840.74 million as of June 30.