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Here's Why NiSource Stock Deserves a Spot in Your Portfolio Right Now

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Key Takeaways

  • NiSource's 2025 EPS and sales are likely to be $1.88 and $6.07B, respectively, up 7.4% and 11.3% Y/Y.
  • NI plans $19.4B in capital investments during 2025-2029 to drive growth and reliability.
  • NI shares rose 8.8% in three months, outpacing the industry's 0.7% growth.

NiSource Inc. (NI - Free Report) continues to benefit from its strategic infrastructure investments and stable returns from regulated assets. The company continues to expand its portfolio of clean assets, which enhances its overall performance. NI 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) is pinned at $1.88, indicating a year-over-year increase of 7.4%.

The Zacks Consensus Estimate for 2025 sales is pinned at $6.07 billion, indicating a year-over-year increase of 11.3%.

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 15.2%.

Debt Position of NI

Currently, NiSource’s total debt to capital is 58.9%, better than the industry’s average of 59.75%. 

The time-to-interest earned ratio at the end of the second quarter of 2025 was 3.1. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

NI’s Focus on Investments to Strengthen Operations

NiSource expects investments in the range of $4-$4.3 billion for 2025. These capital investments include advanced deposits for project costs as well as milestone payments to the renewable generation asset developers. It also projected an investment of $19.4 billion for the 2025-2029 period, including capital investments to support its generation transition strategy.

NiSource expects an annual rate base growth of 8-10% during 2025-2029, driven by its capital expenditures. The company has a 100% regulated utility business model. NI’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.

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. The company expects an annual dividend payout ratio of 60-70%. Its current dividend yield is 2.64%, better than the Zacks S&P 500 composite's average of 1.15%.

NI’s Share Price Performance

In the past three months, the stock has returned 8.8% compared with the industry’s growth of 0.7%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the same industry are TransAlta (TAC - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and National Grid Transco (NGG - Free Report) and Fortis (FTS - Free Report) , both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TAC’s 2025 EPS is pinned at 8 cents, indicating a year-over-year decline of 81.4%. The Zacks Consensus Estimate for 2025 sales is pinned at $2 billion, indicating year-over-year decline of 4%.

NGG’s long-term earnings growth rate is 8.42%. The Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $5.25, indicating a year-over-year improvement of 47.1%.

FTS’ long-term earnings growth rate is 5.13%. The company delivered an average earnings surprise of 4.5% in the last four quarters.

 

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