Low-Risk Retirement Portfolio: Top 5 Stocks

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

Number of Hedge Fund Holders: 33

American Electric Power Company, Inc. (NASDAQ:AEP) is an Ohio-based electric utility company that provides its services to over five million customers in 11 states. Since the beginning of the year, the stock gained 13.50% and its 12-month returns stood at 13.32%, as of the close of August 9.

American Electric Power Company, Inc. (NASDAQ:AEP) has been making dividend payments for every quarter since 1910 and maintained a 12-year track record of consistent dividend growth. The company pays a quarterly dividend of $0.78 per share, with a yield of 3.10%, as recorded on August 9.

In Q2 2022, American Electric Power Company, Inc. (NASDAQ:AEP) posted an EPS of $1.20, beating estimates by $0.01. The company generated revenue of $4.6 billion, up 21.1% from the same period last year. Its operating cash flow for the quarter came in at $1.36 billion.

As of the end of March 2022, 33 hedge funds tracked by Insider Monkey owned stakes in American Electric Power Company, Inc. (NASDAQ:AEP), compared with 34 in the previous quarter. These stakes hold a total value of roughly $430 million. With over 1.2 million shares, Millennium Management was the company’s largest stakeholder in Q1.

ClearBridge Investments mentioned American Electric Power Company, Inc. (NASDAQ:AEP) in its Q1 2022 investor letter. Here is what the firm has to say:

“About 5% of the portfolio is in transitioning power companies, typically migrating from coal to renewables. We have been active in encouraging these transitions and added a new position in American Electric Power (NASDAQ:AEP). AEP has the fastest planned renewable energy ramp in the U.S., with plans to both shrink coal and grow renewables by 50% each by 2030. This would drive an 80% emissions reduction, while supporting high single-digit earnings growth at a double-digit return.”