July 12, 2026 a 11:31 am
NI: Dividend Analysis - NiSource Inc
NiSource Inc, a leading utility company, demonstrates strong dividend credentials with a long history of maintaining dividend payouts. With steady dividend growth, an attractive yield, and a stable sector presence, NiSource Inc remains a potential choice for income-focused investors. However, investors should also consider payout ratios and cash flow aspects due to the challenging financial environment.
📊 Overview
NiSource Inc operates within the utilities sector, known for its relative stability and reliable dividend distributions. Below is an overview of NiSource's key dividend metrics.
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend yield | 2.52 % |
| Current dividend per share | 1.12 USD |
| Dividend history | 42 years |
| Last cut or suspension | None |
🗣️ Dividend History
NiSource's long-standing dividend history underscores its commitment to shareholders. The historical stability of dividend payments is a crucial indicator of a company's potential to deliver reliable returns over the long term.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.90 |
| 2025 | 1.12 |
| 2024 | 1.06 |
| 2023 | 1.00 |
| 2022 | 0.94 |
📈 Dividend Growth
Sustained dividend growth reflects a company's financial health and its ability to increase shareholder returns over time. Below, we can see NiSource's dividend growth over the past 3 and 5 years.
| Time | Growth |
|---|---|
| 3 years | 6.01 % |
| 5 years | 5.92 % |
The average dividend growth is 5.92 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio gives investors insights into how much of the company's earnings and free cash flow is returned to investors as dividends. It indicates how sustainable a company's dividend payout is in the long term.
| Key figure | Ratio |
|---|---|
| EPS-based | 55.86 % |
| Free cash flow-based | -64.63 % |
NiSource's EPS-based payout ratio of 55.86 % suggests a balanced distribution policy. However, the negative FCF-based ratio indicates potential challenges in cash flow management, warranting further investigation.
⚠️ Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency metrics helps evaluate a company's operational prowess and financial health. Here's a historical overview for NiSource.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | -6.43 % | -5.16 % | -2.13 % |
| Earnings Yield | 6.47 % | 4.55 % | 4.71 % |
| CAPEX to Operating Cash Flow | 136.73 % | 148.36 % | 117.78 % |
| Stock-based Compensation to Revenue | 0.43 % | 0.59 % | 0 % |
| Free Cash Flow / Operating Cash Flow Ratio | -36.73 % | -48.36 % | -17.78 % |
Fluctuating free cash flow and high CAPEX requirements point to cash management challenges, potentially impacting future dividend sustainability.
🔍 Balance Sheet & Leverage Analysis
Examining debt levels and liquidity ratios provides insights into the firm's financial stability and risk profile.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.71 | 1.61 | 1.72 |
| Debt-to-Assets | 0.45 | 0.44 | 0.44 |
| Debt-to-Capital | 0.63 | 0.62 | 0.63 |
| Net Debt to EBITDA | 5.35 | 5.37 | 5.33 |
| Current Ratio | 0.85 | 0.51 | 0.69 |
| Quick Ratio | 0.76 | 0.41 | 0.56 |
| Financial Leverage | 3.76 | 3.66 | 3.87 |
High leverage and subdued liquidity metrics suggest a potential risk in financial flexibility and long-term solvency.
🏅 Fundamental Strength & Profitability
Key profitability ratios provide a window into the company's core operational efficiency.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 8.64 % | 8.76 % | 9.84 % |
| Return on Assets | 2.30 % | 2.39 % | 2.54 % |
| Margins: Net | 12.97 % | 13.94 % | 13.99 % |
| Margins: EBIT | 23.89 % | 27.97 % | 27.93 % |
| Margins: EBITDA | 40.38 % | 47.09 % | 45.51 % |
| Margins: Gross | 44.99 % | 51.47 % | 58.57 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
Stable profitability ratios indicate a robust business model capable of driving consistent returns, though R&D remains a non-factor.
📉 Price Development
🚦 Dividend Scoring System
| Criterion | Score | Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 25/40
💬 Rating
NiSource Inc presents a mixed dividend profile with strengths in stability and continuity but challenges in cash flow management. Caution is advised as potential investors weigh stable decade-long payouts against financial leverage and liquidity concerns. A prudent choice for those focusing on long-term stability over rapid growth.
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