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 3–1 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% | 2.89% | Tie |
| Dividend safety | 8.8/10 | 7.8/10 | AEP wins |
| Growth trend | -0.62% vs 5y | +0.39% vs 5y | AEP wins |
| Volatility (beta) | 0.55 | 0.67 | AEP wins |
| Scale | $71.2B | $178.8B | NEE wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 3 wins | 1 wins | AEP wins |
Dimension by dimension
AEP and NEE have nearly identical yields (2.90% vs 2.89%)
Yields are within 5 basis points — effectively a coin-flip on income.
AEP wins on safety (8.8/10 vs 7.8/10)
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 shows healthier dividend-vs-price trend
AEP's yield is 0.62% below its 5y average, versus 0.39% 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 2.5× 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, AEP or NEE?
AEP wins 3–1 on our six-dimension comparison, but NEE can still be the better fit depending on your priorities — see each dimension below.
Does AEP or NEE have a higher yield?
Yields are within 5 basis points — effectively a coin-flip on income.
Is AEP or NEE a safer dividend?
AEP scores 8.8/10 (Strong) on the Infnits dividend safety scale. NEE scores 7.8/10 (Solid). See the safety dimension above for what drove each score.
Should I own both AEP and NEE?
It depends on overlap. Two ETFs in similar categories often hold many of the same companies — owning both can mean paying two expense ratios for similar exposure. Check the underlying holdings before stacking.
Already own AEP or NEE? See if the other adds anything.
Connect your brokerage and Infnits checks whether adding AEP to your existing portfolio actually diversifies — or just duplicates exposure (ETF look-through included).
Check overlap with my portfolio →