Jim Cramer on American Electric: "I Am a Big Fan, Have Been for 20 Years"

American Electric Power Company, Inc. (NASDAQ:AEP) is one of the stocks Jim Cramer put under the spotlight. Cramer noted that he has been a big fan of the stock for 20 years, as he commented:

“AEP’s had a tremendous run this year with a stock up 25% year to date, thanks to load growth in the data centers… On the last conference call, AEP said it now projects a staggering 24 gigawatts of new customer load by 2030, which was a 14% increase from what they forecasted just three months before. That’s how fast the story’s moving. At the same time, AEP said its customers are actively looking to connect an additional 190 gigawatts of load to their system.

That’s roughly five times the current system size of 37 gigawatts. CEO Bill Fehrman called the load growth ‘unprecedented’. But he said that AEP’s uniquely suited to address this challenge because it has such an advanced transmission network. We mostly don’t have a great electric grid in this country… but that’s nothing that AEP needs to worry about. Stock sells for just 20 times this year’s earnings estimates, solid 3.2% dividend yield. I am a big fan, have been for 20 years.”

American Electric Power Company, Inc. (NASDAQ:AEP) generates, transmits, and distributes electricity using coal, natural gas, nuclear, renewable, and other energy sources.

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Disclosure: None. This article is originally published at Insider Monkey.