MERRILLVILLE, Ind. – NiSource Inc. (NYSE: NYSE:NI), a major regulated utility company in the United States, has announced a quarterly dividend of $0.265 per share. The dividend is scheduled to be paid on November 20, 2024, to shareholders who are on record as of October 31, 2024.
NiSource, which operates under the Columbia Gas and NIPSCO brands, provides natural gas and electric service to approximately 3.3 million natural gas customers and 500,000 electric customers across six states. The company is known for its commitment to safety, reliability, and customer service, and employs around 7,400 individuals.
The company has been recognized for its sustainability efforts, being included in the Dow Jones Sustainability - North America Index. It has also earned accolades from TIME Magazine as one of the World's Best Companies and from Forbes as one of America's Best Employers for Diversity.
In other recent news, NiSource Inc. has seen its share target raised to $34 by BMO Capital. This revision follows the company's Q2 2024 earnings, which exceeded expectations, and the successful completion of approximately $500 million of its equity issuance plan for 2024. NiSource also emphasized its growth initiatives, predicting a 6% to 8% adjusted EPS growth and 8% to 10% rate base growth from 2023 to 2028.
The company's recent earnings call highlighted potential scenarios affecting generation requirements and the potential for load growth driven by data center developments. NiSource also plans to issue up to $600 million of at-the-market equity in 2024 to bolster its financial standing. As part of its commitment to renewable energy, the company is investing in solar projects and power purchase agreements.
These recent developments underscore the confidence of BMO Capital in NiSource's outlook, as reflected in the Outperform rating. Despite potential challenges such as increased financing costs and regulatory outcomes, NiSource remains optimistic about load growth, especially from data centers. The company is also exploring partnerships and economic development opportunities, including supplying gas to data centers.
InvestingPro Insights
As NiSource Inc. (NYSE: NI) continues to reward its shareholders with regular dividend payments, the latest announcement of a $0.265 per share quarterly dividend is a testament to the company's stability and commitment to shareholder returns. Notably, NiSource has raised its dividend for 7 consecutive years, underscoring a reliable income stream for investors. An InvestingPro Tip highlights this streak, suggesting a track record of consistent financial management and investor confidence.
Examining the company's financial health, NiSource operates with a significant debt burden, which is an important consideration for investors. This insight, another InvestingPro Tip, is crucial for assessing the company's long-term sustainability and financial flexibility.
Turning to the company's valuation, NiSource has a market capitalization of $14.2 billion, with a P/E ratio of 18.75. This valuation metric indicates how much investors are willing to pay for a dollar of earnings and, in NiSource's case, suggests a moderate level of market confidence. The company's revenue for the last twelve months as of Q2 2024 stands at $5.24 billion, though it's important to note a revenue decline of 10.42% during this period. Despite this, the company's gross profit margin remains strong at 51.05%, reflecting its ability to maintain profitability.
For those interested in further insights and tips, there are additional InvestingPro Tips available that can provide deeper analysis and guidance on NiSource Inc. at https://www.investing.com/pro/NI.
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