The Board of Directors of American Electric Power Co. today approved an increase in the regular quarterly cash dividend on a share of the company’s common stock to 39 cents a share from the previous 37 cents a share.
The dividend is payable Dec. 8, 2006, to shareholders of record as of Nov. 10, 2006, and is the company’s 386th consecutive quarterly common stock cash dividend. AEP has paid a cash dividend on its common stock every quarter since July 1910.
The change represents an increase of approximately 5 percent in the annual dividend, to $1.56 from $1.48. Michael G. Morris, AEP’s chairman, president and chief executive officer, announced Oct. 10 that company management would recommend the increase to the board of directors this month.
“The increase in the dividend reflects our confidence that our strong utility operations, the focus of our strategy, will continue to produce steady earnings growth,” Morris said. “We’re pleased to be able to reward our shareholders with a dividend increase for the second straight year.”
The quarterly dividend was increased to 37 cents from 35 cents in the fourth quarter of 2005.