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

NiSource Inc.’s NI strategic investment plans to modernize infrastructure should 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 HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 3.2% to $1.91 in the past 60 days.The Zacks Consensus Estimate for 2025 sales is pinned at $5.99 billion, indicating a year-over-year increase of 9.9%.NiSource’s long-term (three to five years) earnings growth rate is 8.15%. The company delivered a trailing four-quarter average earnings surprise of 23%.Debt Position of NICurrently, NiSource’s total debt to capital is 56.68%, better than the industry’s average of 60.39%.The time-to-interest earned ratio at the end of the fourth quarter of 2024 was 2.9. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.NI’s Dividend GrowthThe company has been consistently increasing the value of its shareholders through dividends. It expects to deliver a 9-11% annual return over the long term. Currently, NiSource’s quarterly dividend is 28 cents per share. This represents an annualized dividend of $1.12 per share, up 6% from the previous level. The company expects a targeted annual dividend payout ratio of 60-70%. Its current dividend yield is 2.82%, better than the Zacks S&P 500 composite's average of 1.18%.NI’s Systematic InvestmentsThe company is working on a long-term utility infrastructure modernization program. NiSource made capital investments worth $3.3 billion in 2024. It expects investments in the range of $4-$4.3 billion for 2025 and also projected an investment of $19.4 billion for the 2025-2029 period.NI has a 100% regulated utility business model. Its 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 Share Price PerformanceIn the past three months, the stock has returned 7.8% against the industry’s decline of 2.7%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are NextEra Energy NEE, Exelon Corporation EXC and CenterPoint Energy CNP, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.NEE’s long-term earnings growth rate is 7.78%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 7.3% from the bottom line recorded in 2024.EXC’s long-term earnings growth rate is 5.71%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 5.2% from the bottom line recorded in 2024.CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for 2024 EPS indicates year-over-year growth of 8%. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report NextEra Energy, Inc. (NEE): Free Stock Analysis Report NiSource, Inc (NI): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks