Stocks & Dividends FAQ
If you are a current or potential AEP shareholder, let us help you find the answers you're looking for.
- Where is AEP stock traded?
American Electric Power is traded on Nasdaq under the ticker symbol "AEP".
The AEP Company Dividend Reinvestment and Direct Stock Purchase Plan is available to the public for the purchase of AEP common stocks directly without paying brokerage commissions.
Non-employee investors must make an initial investment of $250 (or authorize 10 monthly withdrawals of at least $25) and pay a one time $10 fee.
For a Prospectus and Enrollment Form, you can call 1-800-523-0314 or visit the Computershare website.
- How do I get started with direct purchase of AEP stock?
Non-shareholders can purchase the initial shares of AEP common stock through the plan with a minimum investment of $250.00 as a cash investment or as ten automatic monthly withdrawals from a bank account of at least $25.00 each. The maximum investment is $250,000 in a calendar year. A $10.00 initial investment fee is charged to establish the account. An initial enrollment packet can be obtained by calling the agent, Computershare at 1-800-328-6955.
The Plan account can be in an individual name, more than one name, a custodial for a minor child, or a trust; however, only one social security number or tax identification number is necessary. If any other account name is desired, the new investor should call Computershare at 1-800-328-6955 for guidance in the wording and legality of the registration.
Full shares and fractional shares (rounded to three decimals) are purchased, and Computershare holds the shares in book entry form. A certificate can be requested for any full shares, after the Transaction Advice Form is received by contacting Computershare at 1-800-328-6955. No certificate is issued for the fractional share.
Additional voluntary cash payments can be made to purchase additional shares, but there is no obligation to purchase additional shares.
Plan shares held by Computershare can be transferred by using the form provided on the Transaction Advice Form or Reinvestment Statement. If no form is available, contact Computershare at 1-800-328-6955 to receive another form or a stock power to use for the transfer.
Plan shares can be sold by contacting Computershare at 1-800-328-6955. A fee of $5.00 is charged for the sale transaction and a 12¢ per share brokerage commission. The fees and commission will be deducted from the sale price and a check sent approximately 72 hours after the sale.
Current registered shareholders can contact Computershare at 1-800-328-6955 to request a Plan enrollment packet for their established account. No fee is charged for enrolling in DRP on an established account.
- How can I make a voluntary cash purchase of additional shares?
Current dividend reinvestment plan participants may purchase additional shares by sending a check payable to "Computershare-AEP"--for as little as $25 up to a maximum of $250,000 per calendar year--with the tear-off coupon from the Plan Statement (or Transaction Advice Form), either in the yellow pre-addressed envelope that they receive with the statement or form; or if the envelope is not available, to: Investment Plan Services, PO Box 13517, Newark, NJ 07188-0001. The shareholder's account number and the AEP Company Code (0116) should be on the check or money order. Also, automatic deductions from a bank account can be made. If you need a form, contact Computershare at 1-800-328-6955.
Voluntary cash investments are made weekly. In order to be entitled to the next dividend, voluntary cash purchases must be received by the Voluntary Cash Investment Date that is prior to the ex-dividend date. If you need to verify the next investment date, contact Computershare at 1-800-328-6955.
If a shareholder wants to cancel a cash payment not already invested, a written or telephone request must be received by Computershare no later than two business days prior to the Voluntary Cash Investment Date. No refund of a check or money order will be made until the funds have been actually received and collected by Computershare.
For the non-shareholder, contact Computershare at 1-800-328-6955 for information on making your initial investment through the AEP Dividend Reinvestment and Direct Stock Purchase Plan.
- How can I automate my investment in AEP stock?
Automatic voluntary payments (up to $250,000 per calendar year) can be deducted from a checking, savings or money market account to purchase additional shares, and the designated amount will be electronically sent to our agent, Computershare, that administers the plan. An 'Authorization Form For Automatic Deductions' is included with both the Initial Investment Enrollment and the DRP Enrollment packets. Contact Computershare at 1-800-328-6955 to receive a form.
You will need to provide the bank routing number, your bank account number and the type of account (checking, savings, money market); as well as, the amount of the withdrawal (in whole U.S. dollars only) and the frequency of the automatic deductions--either the 1st or 15th day of each month, or both. (If the 1st or 15th is not a business day, the deduction will be the next business day.)
Investments are made weekly, and participants should allow four to six weeks for their first investment to be initiated.
To change or terminate automatic deductions, participants need to complete and submit to Computershare a new Authorization Form For Automatic Deductions. A new Form must be completed if a participant has a change to the bank account number or wants to change banks or bank accounts.
Non-shareholders may purchase initial shares by automated investment also. Contact Computershare at 1-800-328-6955 for an Initial Investment Enrollment packet.
- How can I safeguard my stock certificates?
Physical certificates can be deposited into your account and held in book entry (safekeeping). When you deposit the shares you no longer have to worry about safeguarding the physical certificates. The shares can be withdrawn or sold at any time. The dividends can be paid in cash or reinvested, so all shareholders can use the custodial service, regardless of whether or not they use any of the other services offered through the Plan (sales, purchases, etc).
If you are in the Plan, please send your certificates unendorsed with a tear-off form from your statement or send a brief letter of instruction to:
Computershare - AEP
250 Royall Street
Canton, MA 02021
The stock certificates you wish to deposit with the Program Administrator should be sent (unendorsed) to the address above via registered mail, return receipt requested and insured for possible mail loss of 3% of the market value. This represents the cost to you to have the certificates replaced if Computershare does not receive them.
If you are not in the AEP reinvestment plan and want to deposit certificate shares into the Plan, contact Computershare at 1-800-328-6955 to request an enrollment package.
You will promptly receive a statement from Computershare confirming each deposit of your shares for safekeeping.
There is no cost for having Computershare hold shares in safekeeping.
- Can certificates be withdrawn from my plan account?
A certificate can be issued for any whole shares held by Computershare in your plan account. Certificates cannot be issued for fractional shares.
To request a certificate withdrawal, simply contact Computershare at 1-800-328-6955.
- How do I reinvest my dividends in AEP stock?
If you are a registered shareholder of AEP common stock and want to reinvest all of the dividend on your shares--or want to receive a cash dividend on some of your shares and reinvest the dividend on the remaining shares--you can receive an enrollment packet by contacting Computershare at 1-800-328-6955. With either option, you can also make voluntary cash payments. (If you do not want to reinvest but want to buy additional shares, see "Voluntary Cash Purchases of Shares".)
"Full" Reinvestment is just that, the reinvestment of the full dividend to purchase additional shares.
"Partial" Reinvestment is where the shareholder indicates the number of whole shares to receive the cash dividend. The dividends on all remaining shares are reinvested. The shareholder will receive a check for the dividend on the indicated number of shares and a statement of the reinvested dividend.
The Reinvestment Statement is sent as soon as possible after the reinvestment is completed.
Changes to the Plan can be made by contacting Computershare at 1-800-328-6955 to request an "option change" form. A packet will be sent which contains an Enrollment Authorization Form on which they can indicate the new investment intent. The words "Option Change" should be written on the form.
Stock held in "street" or "nominee" name with a broker, bank or other financial entity, is not eligible to participate in the Plan; however, you can contact the broker, bank, etc., and ask that a certificate be issued. When Computershare registers the shares in certificate form, a Plan enrollment packet will automatically be sent.
- Can dividends be directly deposited to my bank account?
AEP offers shareholders the opportunity to deposit dividends directly to their account at a financial institution. Through the Direct Deposit service, your dividend will be sent by Electric Funds Transfer (EFT) directly to your designated bank account on the payable date. Contact Computershare at 1-800-328-6955 for information on Direct Deposit or to request an enrollment form.
- When are dividends paid?
AEP's dividends are customarily paid on or about the 10th of March, June, September and December. The dividend record date normally precedes the dividend payment date by approximately one month.
As a registered shareholder, you are entitled to receive any cash dividends paid by AEP on the shares you hold on a record date. Current dividends, as well as future payments, are typically determined by the Board of Directors. When the Board declares a dividend, they also establish a dividend record date. The record date is the designated date on which shares must be held to receive a dividend payment. If you have the dividend check mailed to you and it does not arrive within 5 days of the payable date, please contact Computershare at 1-800-328-6955 for a replacement.
- What should I do about the loss or theft of a dividend check?
If you believe your dividend check has been lost or stolen, or if you have not received it within 5 days of the payable date, contact us immediately. Upon authorization from you, a stop payment order will be placed against the original check and a replacement check will be issued to you. Once a dividend check is replaced, the original check is no longer valid and should not be cashed if received.
- What are the US Federal Income Tax consequences of the AEP/CSW Merger?
In Accordance with the merger agreement, the following are the tax consequences of the merger to CSW shareholders:
- The aggregate basis of the AEP Shares received by a CSW stockholder in the Merger (including any fractional share deemed received) will be the same as the aggregate basis of the CSW Shares surrendered in exchange therefore;
- The holding period of the AEP Shares received by a CSW stockholder in the Merger (including any fractional share deemed received) will include the holding period of the CSW Shares surrendered in exchange therefore,
- A stockholder of CSW who receives cash in lieu of a fractional share will recognize gain or loss equal to the difference, if any, between such stockholder's basis in the fractional share (as described in paragraph (c) above) and the amount of cash received. Such gain or loss will be eligible for long-term capital gain or loss treatment if the CSW shares would have been eligible for the capital gain or loss treatment under current IRS regulations.
Tax matters can be complicated and the tax consequences of the merger to you will depend on the facts of your own situation. You should consult your own tax advisors to fully understand the tax consequences of the merger to you.
Still need help? Contact us.