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Here's Why You Should Include NiSource Stock in Your Portfolio Now
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Key Takeaways
NiSource plans to invest $4-$4.3B in 2025 and $19.4B during 2025-2029 for infrastructure upgrades.
NI expects 8-10% annual rate base growth and 9-11% annual returns over the long term.
NI's 2025 EPS estimate rose 0.5% in 60 days, with shares up 8% in six months.
NiSource Inc. (NI - Free Report) continues to benefit from its strategic investment plans to modernize infrastructure. This helps the business boost its service reliability. NI continues to expand its portfolio of clean assets, which enhances its overall performance. The company is a good investment option in the utility industry, given its growth prospects.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
NI’s Growth Projections & Surprise History
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.5% to $1.88 in the past 60 days.
The Zacks Consensus Estimate for 2025 sales is pinned at $5.99 billion, indicating a year-over-year increase of 9.8%.
NiSource’s long-term (three to five years) earnings growth rate is 7.88%. The company delivered a trailing four-quarter average earnings surprise of 24%.
NI’s Dividend Growth
The company has been consistently increasing the value of its shareholders through dividends. It expects to deliver an annual return of 9-11% over the long term. Currently, NiSource’s quarterly dividend is 28 cents per share. This represents an annualized dividend of $1.12 per share, up 6% from the previous level. The company expects a targeted annual dividend payout ratio of 60-70%. Its current dividend yield is 2.83%, better than the Zacks S&P 500 composite's average of 1.22%.
Debt Position of NI
Currently, NiSource’s total debt to capital is 57.63%, better than the industry’s average of 60.81%.
The time-to-interest earned ratio at the end of the first quarter of 2025 was 3.2. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
NI Benefits From Investment Focus
NiSource is working on a long-term utility infrastructure modernization program. The company expects investments in the range of $4-$4.3 billion for 2025. It also projected an investment of $19.4 billion for the 2025-2029 period.
NI expects an annual rate base growth rate of 8-10% during 2025-2029, driven by its capital expenditures. The company’s planned regulated investments should improve the reliability and safety of its services and provide efficient electric and natural gas services to its increasing customer base. More than 75% of NiSource’s capital expenditure starts providing returns in less than 18 months of investment.
NI’s Share Price Performance
In the past six months, the stock has returned 8% compared with the industry’s growth of 6.7%.
POR’s long-term earnings growth rate is 3.35%. The Zacks Consensus Estimate for 2025 EPS is pinned at $3.21, indicating year-over-year growth of 2.2%.
CenterPoint Energy’s long-term earnings growth rate is 7.76%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, indicating a year-over-year improvement of 8%.
OGE Energy’s long-term earnings growth rate is 6.32%. The company delivered an average earnings surprise of 4.6% in the last four quarters.
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Here's Why You Should Include NiSource Stock in Your Portfolio Now
Key Takeaways
NiSource Inc. (NI - Free Report) continues to benefit from its strategic investment plans to modernize infrastructure. This helps the business boost its service reliability. NI continues to expand its portfolio of clean assets, which enhances its overall performance. The company is a good investment option in the utility industry, given its growth prospects.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
NI’s Growth Projections & Surprise History
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.5% to $1.88 in the past 60 days.
The Zacks Consensus Estimate for 2025 sales is pinned at $5.99 billion, indicating a year-over-year increase of 9.8%.
NiSource’s long-term (three to five years) earnings growth rate is 7.88%. The company delivered a trailing four-quarter average earnings surprise of 24%.
NI’s Dividend Growth
The company has been consistently increasing the value of its shareholders through dividends. It expects to deliver an annual return of 9-11% over the long term. Currently, NiSource’s quarterly dividend is 28 cents per share. This represents an annualized dividend of $1.12 per share, up 6% from the previous level. The company expects a targeted annual dividend payout ratio of 60-70%. Its current dividend yield is 2.83%, better than the Zacks S&P 500 composite's average of 1.22%.
Debt Position of NI
Currently, NiSource’s total debt to capital is 57.63%, better than the industry’s average of 60.81%.
The time-to-interest earned ratio at the end of the first quarter of 2025 was 3.2. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
NI Benefits From Investment Focus
NiSource is working on a long-term utility infrastructure modernization program. The company expects investments in the range of $4-$4.3 billion for 2025. It also projected an investment of $19.4 billion for the 2025-2029 period.
NI expects an annual rate base growth rate of 8-10% during 2025-2029, driven by its capital expenditures. The company’s planned regulated investments should improve the reliability and safety of its services and provide efficient electric and natural gas services to its increasing customer base. More than 75% of NiSource’s capital expenditure starts providing returns in less than 18 months of investment.
NI’s Share Price Performance
In the past six months, the stock has returned 8% compared with the industry’s growth of 6.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are Portland General Electric (POR - Free Report) , CenterPoint Energy (CNP - Free Report) and OGE Energy (OGE - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
POR’s long-term earnings growth rate is 3.35%. The Zacks Consensus Estimate for 2025 EPS is pinned at $3.21, indicating year-over-year growth of 2.2%.
CenterPoint Energy’s long-term earnings growth rate is 7.76%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, indicating a year-over-year improvement of 8%.
OGE Energy’s long-term earnings growth rate is 6.32%. The company delivered an average earnings surprise of 4.6% in the last four quarters.