NiSource

Methodology

NiSource's regulated gas and electric utility operations generate highly predictable earnings from approved rate cases and infrastructure investment programs. Regulatory approval processes create exceptional visibility into allowed returns and growth expectations. The stable, regulated model makes earnings projections straightforward and reliable for long-term utility investors.

Methodology

NiSource typically trades at moderate PEG ratios consistent with regulated utilities, reflecting steady growth from infrastructure investments and customer additions. The metric should be compared to utility peers and historical norms rather than the broader market. Interest rate sensitivity often drives valuation more than growth rate differences among utilities.

Methodology

NiSource offers a substantial dividend typical of regulated utilities, making PEGY essential for evaluating total return potential in this income-focused sector. The dividend provides most of the expected total return alongside modest rate base growth. PEGY better captures why investors own utilities primarily for reliable income rather than capital appreciation.