NiSource(US:NI) ZACKS·2024-09-13 13:26Core Viewpoint - NiSource Inc. is positioned as a strong investment option in the utility sector due to its strategic investments in infrastructure modernization and the addition of clean assets to its portfolio [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased by 0.6% to $1.72 over the past 90 days [2] - The estimated sales for the third quarter of 2024 is $1.12 billion, reflecting a year-over-year increase of 8.6% [2] - NiSource's long-term earnings growth rate is projected at 6%, with an average earnings surprise of 20.6% over the past four quarters [2] Debt Position - NiSource's total debt to capital ratio stands at 57.85%, which is better than the industry average of 60.86% [3] - The time-to-interest earned ratio was 2.8 at the end of Q2 2024, indicating the company's capability to meet future interest obligations [3] Dividend Growth - NiSource has consistently paid dividends, with a current quarterly dividend of 26.5 cents per share, leading to an annualized dividend of $1.06, which is a 6% increase from the previous $1 [4] - The company anticipates an annual dividend payout ratio of 60-70%, with a current dividend yield of 3.15%, outperforming the Zacks S&P 500 composite's yield of 1.28% [4] Systematic Investments - NiSource is engaged in a long-term utility infrastructure modernization program, expecting investments between $3.3 billion and $3.5 billion for 2024 [5] - The company projects a total investment of $16.4 billion from 2024 to 2028, with an expected annual rate base growth of 8-10% during 2023-2028 due to capital expenditures [5] Business Model - NiSource operates a 100% regulated utility business model, with planned investments aimed at enhancing the reliability and safety of its services while efficiently serving an increasing customer base [6] Stock Price Performance - Over the past six months, NiSource's stock has returned 25.4%, surpassing the industry's growth of 20% [7]