Why NiSource (NI) is a Great Dividend Stock Right Now
NiSourceNiSource(US:NI) ZACKS·2025-09-25 16:46

Company Overview - NiSource (NI) is based in Merrillville and operates in the Utilities sector, with a year-to-date share price change of 15.29% [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 2.64%, which is lower than the Utility - Electric Power industry's yield of 3.21% and the S&P 500's yield of 1.53% [3] Dividend Performance - NiSource's annualized dividend of $1.12 has increased by 5.7% from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 6.29% [4] - The current payout ratio for NiSource is 59%, indicating that the company distributes 59% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, NiSource anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $1.88 per share, reflecting a 7.43% increase from the previous year [5] Investment Considerations - NiSource is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned as a more stable dividend option compared to high-growth firms or tech start-ups, which typically do not offer dividends [6]