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— Warren Buffett

A 10-year buy-and-hold investment in NiSource Inc. (NYSE: NI) produced a solid total return, with gains supported by both share-price appreciation and reinvested dividends. Using a starting investment date of 10/17/2016 and an ending date of 10/15/2026, the results show how long-term compounding can shape outcomes in a dividend-paying utility stock.

That long horizon matters. Utility investments such as NI are often evaluated less on short-term market swings and more on their ability to generate steady cash flow, support regular dividend payments, and compound shareholder returns over time. A decade-long holding period is therefore a useful framework for assessing whether the business and the stock rewarded patient ownership.

NI 10-Year Return Details

NI 10-Year Return Details
Start date:	10/17/2016	$10,000 10/17/2016   $24,737 10/15/2026
End date:	10/15/2026
Start price/share:	$22.91
End price/share:	$41.25
Starting shares:	436.49
Ending shares:	599.49
Dividends reinvested/share:	$9.19
Total return:	147.29%
Average annual return:	9.48%
Starting investment:	$10,000.00
Ending investment:	$24,737.05

What A $10,000 Investment In NI Became

Over the period shown above, a $10,000 investment in NiSource grew to $24,737.05. That equates to a total return of 147.29% and an average annual return of 9.48%. On a simple level, the exercise demonstrates that NI delivered meaningful long-term compounding for shareholders who stayed invested and reinvested distributions.

Put differently, the ending value was not driven by share-price appreciation alone. The share count increased from 436.49 to 599.49 because dividends were assumed to be reinvested. That additional share accumulation is a central part of the result. For income-oriented equities, especially in sectors where total return can build gradually rather than explosively, reinvestment can materially change the long-run outcome.

[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Why Dividend Reinvestment Matters

Many market participants focus first on the change in a stock’s quoted price. For dividend-paying stocks, that can understate actual shareholder return. In NiSource’s case, investors received $9.19 per share in dividends over the 10-year period examined here. When those dividends are reinvested, each payment purchases incremental shares, which can then generate their own future dividends.

This creates a compounding effect with two moving parts:

• share-price appreciation increases the value of the original investment, and
• reinvested dividends increase the number of shares participating in that appreciation.

That is why total return is generally the more informative measure for evaluating a long-term holding than price return alone.

Current Yield And Yield On Cost

Based on the most recent annualized dividend rate of $1.20 per share, NI has a current yield of approximately 2.91%, using the ending share price of $41.25 in this analysis. That is the forward-looking cash yield implied by the current dividend rate relative to the recent stock price.

A separate concept is yield on cost. This measures the current annualized dividend against the original purchase price rather than the current market price. Using the $22.91 starting share price from 10/17/2016, the yield on cost works out to approximately 5.24%.

That distinction is important:

• Current yield shows what a new buyer would earn at the recent market price.
• Yield on cost shows how the income stream has grown relative to the original entry price.

For long-term holders, yield on cost can be a useful way to visualize dividend growth and the income-producing value of patience. It should not, however, be confused with the return available to a new investor purchasing shares today.

How To Read NI’s 10-Year Performance

The NI buy-and-hold result shown here highlights three broader points about long-term equity ownership:

• Time horizon matters. A decade can smooth out many short-term drawdowns and sentiment swings.
• Total return matters more than price alone. Dividends meaningfully contributed to the ending value.
• Compounding rewards consistency. Reinvestment gradually increased share ownership from 436.49 shares to 599.49 shares.

NiSource operates in the regulated utility space, where return profiles are often shaped by a combination of income generation, capital investment, rate structures, and relatively defensive demand characteristics. Stocks in this category are not typically judged by rapid growth alone; they are often evaluated on stability, cash distribution, and the ability to create acceptable total returns over long holding periods. In that context, NI’s decade-long performance compares as a credible example of how compounding can work in a utility name.

One more investment quote to leave you with:
“Most investors want to do today what they should have done yesterday.” — Larry Summers