Get a Good Jolt From American Electric Power

American Electric Power (NYSE:AEP) is a holding company for a number of electric utilities mainly in the central and south central U.S. It’s known for its consistent earnings and dividend policy. In October, AEP declared a 9.5% increase in its dividend, which is now $1.88, providing a dividend yield of 5.05%. Standard & Poor’s has a “5-Star Strong Buy” on the stock.

Technically AEP has been consolidating between $36 and $39 — except for one selling climax in August that drove it down to $33.50. The stock experienced a false breakout in late October that boosted it to $40, but it reversed back to its 200-day moving average last week.

This correction provides long-term investors with an excellent opportunity to buy this blue-chip utility stock with a high dividend at a bargain price.

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