Tuesday, December 21, 2021

Dividend Increase #91 of 2021 - Union Pacific Corporation (UNP)



Friday, December 10th the Board of Directors of Union Pacific Corporation (UNP) announced a quarterly dividend increase of from $ 1.07 to $ 1.18 per share that’s payable December 30, 2021 to holders of record December 20, 2021. This represents a 10.28% increase over the last quarterly dividend.


“Union Pacific continues to deliver strong cash returns to our shareholders,” said Jennifer Hamann, Union Pacific executive vice president and chief financial officer. “Today’s action, coupled with the 10% increase earlier this year, is consistent with our targeted dividend payout ratio of 45 percent.”


With current price $ 242.70 (today's open), this raise brings their dividend yield to 1.94%.


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 $ 7.21.


The increase in the dividend, and especially its timing, came as a surprise to me, since UNP last increased its dividend in May this year. However, I am very happy to take this announcement.


This is the second dividend increase I've received from Union Pacific Corporation since initiating a position in February 2020. (More here) During this period, the dividend has risen nicely from $0.97 to $1.18 or 21.65%.


This increase raises my YOC to 2.93%.



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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