Here’s why including NI shares in your investment portfolio is a smart move at this moment

Why NiSource Inc. Stands Out as a Utility Investment

NiSource Inc. (NI) is actively upgrading its infrastructure to boost reliability and is steadily shifting away from coal toward cleaner energy sources. Below, we explore the key factors that make this Zacks Rank #2 (Buy) stock an appealing choice in the electric utility sector.

Growth Prospects and Earnings Performance

Analysts project NiSource’s earnings per share to reach $2.05 in 2026, reflecting a 7.9% increase from the previous year. Revenue for 2026 is anticipated to total $6.60 billion. Over the next three to five years, the company’s earnings are expected to grow at an annual rate of 6%. Notably, NiSource has surpassed earnings expectations in three of the last four quarters, with an average positive surprise of 3.18%.

Consistent Dividend Payments

NiSource has a strong track record of rewarding shareholders through regular dividends. The current quarterly dividend stands at $0.30 per share, amounting to $1.20 annually. This translates to a dividend yield of 2.40%, which is significantly higher than the S&P 500 average yield of 1.10%.

Strategic Capital Investments

From 2026 to 2030, NiSource plans to invest approximately $28 billion in capital projects. These investments are aimed at enhancing power generation and grid infrastructure, including the construction of two 1,300-megawatt natural gas plants, the addition of 400 MW in battery storage, and upgrades to key transmission systems. These initiatives are designed to accommodate growing demand from data centers, strengthen grid reliability, and improve service for customers.

Efficient Debt Management

NiSource’s total debt to capital ratio is currently 58.17%, which is more favorable than the industry average of 62.07%. This lower reliance on debt contributes to a more robust capital structure compared to its peers.

Solid Solvency Metrics

At the end of the fourth quarter of 2025, NiSource reported a times interest earned (TIE) ratio of 2.90. This important solvency measure indicates the company’s ability to cover its interest obligations with operating earnings, highlighting its financial stability.

Share Price Momentum

In the past three months, NiSource’s stock price has climbed 15.1%, outpacing the industry’s average gain of 7.1%.

Other Noteworthy Utility Stocks

Other highly ranked utilities in the sector include Consolidated Edison (ED), Entergy (ETR), and Exelon (EXC), all currently holding a Zacks Rank of 2.

• Consolidated Edison: Projected long-term earnings growth of 6.1%, with 2026 EPS estimated at $6.08 (6.7% growth).
• Entergy: Expected long-term earnings growth of 11.5%, with 2026 EPS forecasted at $4.40 (12.5% growth).
• Exelon: Anticipated long-term earnings growth of 6%, with 2026 EPS set at $2.84 (2.5% growth).

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Free Stock Analysis Reports

• Exelon Corporation (EXC): Free Stock Analysis Report
• NiSource, Inc (NI): Free Stock Analysis Report
• Entergy Corporation (ETR): Free Stock Analysis Report
• Consolidated Edison Inc (ED): Free Stock Analysis Report

This article was originally published by Zacks Investment Research.

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