American Electric Power (AEP) Announces 9.5% Increase in Dividend; Guides FY11 EPS; Increases FY11, FY12 Capital Budget

American Electric Power (NYSE: AEP) announces a 9.5% increase in their quarterly dividend from $0.42 to $0.46, or $1.84 annualized. The company is expected to tell analysts that, to fund growth, the 2011 capital budget will be increased by approximately $150 million to $2.6 billion; the 2012 capital budget is expected to be $2.9 billion. To reduce risk, the company has voluntarily pre-funded $500 million into the pension plan in 2010 with an additional $150 million planned for 2011. The company also is expected to announce it has established an ongoing earnings guidance range for 2011 of between $3.00 and $3.20 per share. Consensus is looking for a FY11 EPS of $3.18.... Read more

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