NiSource: A Dividend Rock in the Renewable Stream

Investors seeking steady income and exposure to the energy transition need look no further than NiSource (NYSE: NI). This $18 billion utility giant has built a fortress of dividend reliability, combining a 39-year dividend streak with a 2.83% yield that’s held firm amid economic headwinds. But NiSource isn’t just resting on its past—it’s leveraging a $19 billion capital plan to dominate the renewables race, positioning itself as the ideal defensive, high-yield play for 2025.

Dividend Resilience: A 39-Year Legacy, Backed by Operational Discipline

NiSource’s dividend track record is unmatched in the utility sector. While the company’s 8-year dividend growth streak (as of 2024) has paused in 2025, its ability to maintain a $0.28/quarter payout despite a first-quarter revenue miss highlights its financial fortitude. Even with Q1 2025 revenue dipping to $2.03B (vs. a $2.21B forecast), adjusted EPS soared to $0.98, 8.89% above estimates, proving operational excellence can override short-term market noise.

The dividend’s 60.68% payout ratio leaves ample room for reinvestment, while its 2.83% yield (as of May 2025) offers stability in a volatile market. Compare this to peers like NextEra Energy (NEE), which trades at a 1.4% yield, and it’s clear NiSource delivers superior income security.

The $19B Renewable Play: Fueling Growth Without Sacrificing Dividends

NiSource isn’t just a legacy utility—it’s a renewable disruptor. Its five-year capital plan allocates $19 billion to modernizing grids and expanding renewable natural gas (RNG) and hydrogen infrastructure, sectors poised for explosive growth. By 2029, these investments aim to boost non-GAAP EPS by 6–8% annually, turning NiSource into a regulated utility with tech-scale growth potential.

Critically, these projects are regulatory tailwinds, not headwinds. As a fully regulated utility serving 3.3 million natural gas and 500,000 electric customers, NiSource enjoys steady cash flows to fund its transition. Regulators reward this strategy: its inclusion in the Dow Jones Sustainability - North America Index and Forbes’ Best Employers rankings underscores its ESG credibility, attracting ESG-focused capital.

Why Now? NiSource’s Valuation Is Lagging Its Potential

At a P/E of 20.3, NiSource trades at a discount to its peers. Utilities like Duke Energy (DUK) and Dominion Energy (D) command P/Es of 22–24, yet NiSource offers better dividend resilience and clearer growth catalysts. With $1.85–$1.89 in 2025 EPS guidance already beaten in Q1, the stock is primed for a rerating.

The Bottom Line: Buy NI Before the Transition Takes Off

NiSource is a triple-threat investment:
1. Income Security: A 39-year dividend streak and 2.83% yield provide ballast in volatile markets.
2. Growth Catalysts: $19B in renewables are unlocking 6–8% EPS growth, turning it into a utility with tech stock upside.
3. ESG Credentials: Regulatory support and ESG leadership ensure long-term favorability.

With shares near $35 and a dividend cover of 1.6, NiSource offers rare defensive income paired with strategic growth. This is a buy now opportunity—owning NiSource means owning a piece of the energy transition while collecting checks along the way.

The time to act is now. NiSource isn’t just surviving—it’s thriving, and its stock is ready to shine.