Wednesday, May 18, 2022

Dividend Increase - Union Pacific Corporation (UNP)



Thursday, May 12th the Board of Directors of Union Pacific Corporation (UNP) announced a quarterly dividend increase of from $ 1.18 to $ 1.30 per share that’s payable June 30, 2022 to holders of record May 31, 2022. This represents a 10.17% increase over the last quarterly dividend.


Union Pacific has paid dividends on its common stock for 123 consecutive years.


“Union Pacific continues to generate strong cash returns for our shareholders,” said Jennifer Hamann, Union Pacific executive vice president and chief financial officer. “Today’s dividend increase is consistent with our targeted dividend payout ratio of 45 percent.”


With current price $ 232.19 (yesterday's close), this raise brings their dividend yield to 2.24%.


Union Pacific Corporation is a Dividend Contenders with a 16 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.6, 11.9, 13.7 and 16.1 (Dividend Champions.xls)



Since I own 22 shares of UNP, this will increase my portfolio's projected annual net dividend income by $ 7.87.


The increase and especially its timing, came as a surprise to me, since UNP last increased its dividend in December 2021. However, I am very happy to take this announcement.


This is the third 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 $1.30 or 34%.


This increase raises my YOC to 3.23%.



Summary of 2022 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long UNP


Thanks for stopping by!


1 comment:

  1. Hi DT, I also own UNP in my All Weather Portfolio, and am also happy with it. I own many of the stocks you also own, as well with a quite similar global allocation. Our portfolio size is also quite similar. A few things I noticed: You keep both the BEP and BEPC (I sold BEP and rebought more BEPC with it). In general, my sense is that you have A LOT of stocks. I have one rule which is each dividend should be above 25 USD (per pay-out), otherwise I end of becoming a slave of my portfolio, just filing and logging the various payments. I currently own about 40 companies in my dividend centric portfolio, and want to keep it to a max. 42. Anyways, keep up the good work, and hope you haven't been hit too hard in May! Tough markets. Cheers, Noah