Recently, NiSource declared a dividend affirmation of $0.28 per share and announced earnings results for the full year ended December 31, 2024. Despite a slight downturn in sales and revenue, NiSource experienced improvements in net income and earnings per share, which might have bolstered investor sentiment. Over the last quarter, NiSource's share price increased by nearly 10%, a move that may be connected to the company's steady dividend payments and solid year-over-year earnings improvements. Meanwhile, broad market trends indicate a cautious optimism, with major U.S. stock indices moving higher amid economic updates from the Federal Reserve. As the Dow Jones and S&P 500 saw moderate rises, NiSource's ability to maintain solid returns mirrors favorable market conditions. This environment provided a backdrop against which NiSource's price appreciation aligns with broader market momentum, despite a generally subdued economic outlook.

We've spotted 2 warning signs for NiSource you should be aware of, and 1 of them is significant.

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Over the past five years, NiSource has achieved a total shareholder return of 111.39%. This significant growth is underpinned by a strong commitment to returning value to shareholders through consistent dividend declarations, as witnessed with multiple quarterly payments each year. Furthermore, NiSource's earnings have grown impressively, with an average increase of 33.5% per year over this period. The ability to outperform the US Integrated Utilities industry's average return of 20.6% in the past year highlights its resilience and effective operational strategies.

Key developments such as NiSource's multi-phase hydrogen blending project in partnership with the U.S. Department of Energy in late 2023 also show the company’s initiative to align with emerging energy trends. Additionally, NiSource’s prudent financial management, including a US$900 million follow-on equity offering in February 2024, has bolstered its liquidity, supporting its growth ambitions and reinforcing long-term shareholder value.

According our valuation report, there's an indication that NiSource's share price might be on the expensive side.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:NI.

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