Friday, May 14, 2021

Dividend Increase #48 of 2021 - Union Pacific Corporation (UNP)


Yesterday, May 13th the Board of Directors of Union Pacific Corporation (UNP) announced a quarterly dividend increase of from $ 0.97 to $ 1.07 per share that’s payable June 30, 2021 to holders of record May 28, 2021. This represents a 10.31% increase over the last quarterly dividend.


“I am pleased to report our dividend increase,” said Jennifer Hamann, Union Pacific executive vice president and chief financial officer. “This increase is consistent with the financial guidance outlined at our recent Investor Day to target a dividend payout ratio of 45%.”


With current price $ 225.18 (yesterday's close), this raise brings their dividend yield to 1.90%.


Union Pacific Corporation is a Dividend Contenders with a 15 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 4.9, 16.1, 12.0 and 20.5 (Dividend Champions.xls)



Since I own 22 shares of UNP, this will increase my portfolio's projected annual net dividend income by $ 6.56.


The increase in the dividend, and especially its timing, came as a surprise to me, as the dividend had remained the same for the past seven quarters. However, I am happy to take this announcement.


This is the first dividend increase I've received from Union Pacific Corporation since initiating a position in February 2020. (More here)


This increase raises my YOC to 2.65%.




Summary of 2021 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long UNP


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