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Here's Why You Should Add NI Stock to Your Portfolio Right Now

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Key Takeaways

  • NI plans about $28B in capex through 2030 to upgrade grid infrastructure and expand generation capacity.
  • NI is adding 1,300-MW gas turbines and 400 MW battery storage to boost reliability.
  • NI offers a 2.40% dividend yield; shares rose 15.1% in three months, topping the industry's 7.1% growth.

NiSource Inc. (NI - Free Report) is systematically investing in modernizing its infrastructure to improve operational reliability while gradually replacing its coal-based units with clean energy assets.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick in the Zacks Utility-Electric Power industry at present.

NI’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for 2026 earnings per share (EPS) is pegged at $2.05, implying year-over-year growth of 7.9%.

The consensus estimate for 2026 revenues is pegged at $6.60 billion.

NI’s long-term (three to five years) earnings growth rate is 6%.

NI’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 3.18%.

NI’s Dividend History

NI has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 30 cents per share, resulting in an annualized dividend of $1.20. NI’s current dividend yield is 2.40%, better than the Zacks S&P 500 composite's average of 1.10%.

NI’s Capital Investment Focus

NI’s capital investment plan forecasts capital expenditures to be approximately $28 billion for 2026-2030.

The company's strategic expenditures focus on strengthening its generation and grid capabilities. This includes developing two 1,300-megawatt (MW) natural gas-fired turbines, adding 400 MW of new battery storage and upgrading critical transmission infrastructure, enabling the company to meet rising demand from data centers, enhance system reliability and improve customer satisfaction.

Overview of NI’s Debt Structure

Currently, NI’s total debt to capital is 58.17%, which is better than the industry’s average of 62.07%. The company's capital structure is more efficient than the industry average, owing to its lower reliance on debt.

NI’s Solvency Ratio

NI’s times interest earned ratio (TIE) at the end of the fourth quarter of 2025 was 2.90. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

NI’s Share Price Performance

Over the past three months, NI’s shares have risen 15.1% compared with the industry’s growth of 7.1%.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Consolidated Edison (ED - Free Report) , Entergy (ETR - Free Report) and Exelon (EXC - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ED’s long-term earnings growth rate is 6.1%. The Zacks Consensus Estimate for 2026 EPS is pegged at $6.08, which suggests year-over-year growth of 6.7%.

ETR’s long-term earnings growth rate is 11.5%. The Zacks Consensus Estimate for 2026 EPS is pegged at $4.40, which suggests year-over-year growth of 12.5%.

EXC’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for 2026 EPS is pegged at $2.84, which suggests year-over-year growth of 2.5%.

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