10 Safest Dividend Stocks to Buy Now

1. American Electric Power Company, Inc. (NASDAQ:AEP)

Beta: 0.45

Dividend Yield: 3.56%

No. of Hedge Funds: 47

American Electric Power Company, Inc. (NASDAQ:AEP), an Ohio-based company, is among the largest electric utility companies in the U.S. The company delivers electricity to over five million customers across 11 states. The grid modernization initiatives and the substantial investment in clean energy transition allow the company to gain a competitive edge over its peers in the market. Their regulatory alignment provides resilience despite the changing energy policy frameworks.

American Electric Power Company, Inc. (NASDAQ:AEP) has achieved a 52-week gain of 25.7%, vastly outperforming the market’s 3%, suggesting strong stability. The performance contributed to a 7% year-over-year increase in its operating earnings per share. American Electric Power Company, Inc. (NASDAQ:AEP) will gain full control of its transmission business for a $2.82 billion transaction, closing in mid-2025, which is expected to boost its earnings further. Accordingly, the Q4 report indicated an operating earnings guidance range of $5.75 to $5.95 per share for 2025. Company guidance also expects a 6% to 8% growth rate for its operating earnings between 2025 and 2029, to be supported by a $54 billion capital plan.

The company’s beta stands low at 0.45, indicating minimal volatility. American Electric Power Company, Inc. (NASDAQ:AEP) offers a dividend yield of 3.56%. With 47 hedge funds piling onto the stock, the institutional interest is high, thus earning its position in our list of the safest stocks to buy.

Overall, American Electric Power Company, Inc. (NASDAQ:AEP) ranks first on our list of the safest stocks to buy that pay dividends. While we acknowledge the potential of AEP as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than AEP but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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