Computed head-to-head · 6 dimensions
AEP vs NEE
American Electric Power Company, Inc. versus NextEra Energy, Inc. — yield, safety, growth trend, cost, scale, and tax treatment.
AEP wins 4–1 on our six-dimension comparison, but NEE can still be the better fit depending on your priorities — see each dimension below.
Scorecard at a glance
| Dimension | AEP | NEE | Winner |
|---|---|---|---|
| Yield | 2.90% | 2.82% | AEP wins |
| Dividend safety | 8.8/10 | 8.3/10 | AEP wins |
| Growth trend | -0.62% vs 5y | +0.32% vs 5y | AEP wins |
| Volatility (beta) | 0.55 | 0.67 | AEP wins |
| Scale | $71.2B | $183.4B | NEE wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 4 wins | 1 wins | AEP wins |
Dimension by dimension
AEP wins on yield (2.90% vs 2.82%)
On a $10,000 investment that's about $8 more in annual dividend income before taxes — though higher yield often comes with higher risk.
AEP wins on safety (8.8/10 vs 8.3/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. AEP scores better on the weighted average of those factors.
AEP (8.8/10) scores 0.5 points higher than NEE (8.3/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
AEP shows healthier dividend-vs-price trend
AEP's yield is 0.62% below its 5y average, versus 0.32% for NEE. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
AEP is less volatile (beta 0.55 vs 0.67)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
NEE is 2.6× larger by market cap
Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice.Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
Which is better for income, AEP or NEE?
AEP wins 4–1 on our six-dimension comparison, but NEE can still be the better fit depending on your priorities — see each dimension below.
AEP vs NEE: which has a higher dividend yield?
AEP yields 2.90% and NEE yields 2.82%. On a $10,000 investment that's about $8 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is AEP or NEE a safer dividend in 2026?
AEP scores 8.8/10 (Strong) on the Infnits dividend safety scale. NEE scores 8.3/10 (Strong). AEP is the safer pick on our scoring model.
Which has better dividend growth, AEP or NEE?
AEP's yield is 0.62% below its 5y average, versus 0.32% for NEE. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
AEP vs NEE: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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