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

NiSource Inc.’s NI ongoing strategic investments to modernize infrastructure are likely to further enhance the reliability of its operations. The company continues to add clean assets to its portfolio, which helps boost its overall performance. Given its growth opportunities, NiSource makes for a solid investment option in the Utility sector.

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 NI’s 2024 earnings per share (EPS) is pinned at $1.72, which indicates year-over-year growth of 7.5%.

The consensus estimate for 2025 sales is pinned at $6.05 billion, which indicates year-over-year growth of 12.1%.

The company’s long-term (three to five years) earnings growth rate is 7%.

NI has a positive earnings surprise history. Its trailing four-quarter earnings surprise is 20.64%, on average.

NI’s Debt Position

Currently, NiSource’s total debt to capital is 57.85%, better than the industry’s average of 60.05%.

The time-to-interest earned ratio at the end of the second quarter of 2024 was 2.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

NI’s Dividend Growth

NiSource has been consistently paying dividends to its shareholders. Currently, NiSource’s quarterly dividend is 26.5 cents per share, resulting in an annualized dividend of $1.06, up 6% from the previous level of $1. The company expects its annual dividend payout ratio to be in the range of 60-70%. Its current dividend yield is 3.07%, better than the Zacks S&P 500 composite’s 1.22%.

NI’s Systematic Investments

NiSource continues to work on a long-term utility infrastructure modernization program. The company expects investments to be in the range of $3.3-$3.5 billion for 2024. It also projects an investment of $16.4 billion during the 2024-2028 period. NiSource expects an annual rate base growth in the range of 8-10% in the 2023-2028 period caused by its capital expenditures.

The company has a 100% regulated utility business model. NI’s planned regulated investments are likely to improve the reliability and safety of its services and provide efficient electric and natural gas services to its increasing customer base.

NI’s Stock Price Performance

In the past six months, the stock has returned 29.3% compared with the industry’s 20.7% growth.

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Other Stocks to Consider

Some other top-ranked stocks from the same industry are Evergy EVRG, DTE Energy DTE and Xcel Energy XEL. Each of these stocks carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EVRG’s long-term earnings growth rate is 5.8%. The Zacks Consensus Estimate for EVRG’s 2024 EPS indicates year-over-year growth of 8.5%.

DTE’s long-term earnings growth rate is 8.1%. The consensus estimate for DTE’s 2024 EPS indicates year-over-year growth of 17%.

XEL’s long-term earnings growth rate is 6.4%. The Zacks Consensus Estimate for XEL’s 2024 EPS indicates year-over-year growth of 6%.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

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