NiSource (NI) DIvidends Date & History

Key Takeaways

• NiSource Inc. (NI) provides a forward dividend yield of 2.50%, supported by quarterly payments of $0.30 per share.
• The company targets a payout ratio of 60-70%, with current ratio at 57.44%, indicating strong sustainability.
• Dividend has grown steadily, with annual totals rising from $0.80 in 2019 to $1.12 in 2025, reflecting approximately 6% compound annual growth.
• Recent ex-dividend date was April 30, 2026, with payment on May 20, 2026.
• Free cash flow covers the dividend adequately, despite typical utility sector debt levels.
• Appeals to conservative investors seeking reliable income in the regulated gas utility space.

Dividend Overview

NiSource Inc. (NI), a leading regulated natural gas utility serving over 3 million customers across seven states, maintains a consistent quarterly dividend policy. The current annual dividend is $1.20 per share, delivering a forward yield of 2.50% at recent stock prices around $48. This positions NI as a modest dividend growth stock rather than a high-yield play, with payments made every three months. The most recent declaration on March 17, 2026, confirmed $0.30 per share, payable May 20, 2026, to shareholders of record before the April 30 ex-dividend date. Management targets a payout ratio of 60-70%, balancing reinvestment in infrastructure with shareholder returns. This profile suits investors prioritizing stability over aggressive yields in the defensive utilities sector.

Dividend History and Growth

NiSource has demonstrated reliable dividend growth over the past decade, increasing payouts nearly every year. Annual totals progressed from $0.80 in 2019 to $0.84 in 2020, $0.88 in 2021, $0.94 in 2022, $1.00 in 2023, $1.06 in 2024, and $1.12 in 2025. Quarterly dividends rose steadily, from $0.20 in early 2019 to $0.265 by 2024 and $0.28-$0.30 in 2025-2026, reflecting about 6% compound annual growth. The company has raised dividends for 11 consecutive years, underscoring commitment to shareholders amid regulated rate cases and infrastructure investments. No cuts have occurred recently, with payments consistently timed around late January, April, July, and October ex-dates. This track record aligns with NiSource's long-term strategy of funding growth while enhancing returns.

Dividend Sustainability and Payout Ratio

NiSource's dividend appears sustainable, backed by a trailing payout ratio of 57.44%—well below the targeted 60-70% range—and solid earnings coverage. Adjusted earnings per share (EPS, a measure of profitability excluding one-time items) have supported increases, with 2026 guidance at $2.02-$2.07. Free cash flow payout stands at approximately 67%, providing a buffer despite capital-intensive operations. As a regulated utility, NI carries elevated debt-to-equity of 137%, typical for the sector to finance pipelines and grid upgrades, but funds from operations to debt ratio exceeds 16%, signaling financial health. Stable cash flows from rate-regulated revenues mitigate risks, positioning the dividend for continued growth without strain.

Dividend Compared to Industry Peers

In the multi-utilities and gas distribution sector, NiSource's 2.50% forward yield is competitive but slightly below the industry average of around 3%. Peers like Atmos Energy (ATO) offer ~2.3%, Spire Inc. (SR) ~3.8%, and ONE Gas (OGS) ~3.5%, reflecting varied growth profiles. NiSource's payout ratio is healthier than higher-yield rivals, trading growth for stability. Its consistent increases outperform stagnant peers, making it attractive for balanced exposure versus pure high-yield options like some electric utilities averaging 2.8%.

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Is This Stock Attractive for Dividend Investors?

NiSource Inc. (NI) suits conservative dividend investors seeking reliable income and modest growth in a low-volatility sector. Its 2.50% yield, backed by regulated cash flows, appeals to those prioritizing capital preservation over high payouts, especially amid economic uncertainty. Income-focused portfolios benefit from quarterly consistency and 11-year growth streak, while the sub-60% payout ratio signals room for future raises tied to infrastructure spending. Long-term holders may value defensive qualities, as utilities like NI weather market downturns better than cyclicals. However, high debt and interest rate sensitivity could deter aggressive growth seekers. Overall, it fits balanced strategies emphasizing sustainability over yield chasing, though sector headwinds like regulation warrant monitoring.

Disclaimer

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