Wednesday, July 17th the Board of Directors of Union Pacific Corporation (UNP) announced a quarterly dividend increase of from $1.30 to $1.34per share that’s payable September 30, 2024 to holders of record August 30, 2024. This represents a 3.08% increase over the last quarterly dividend.
Union Pacific has paid dividends on its common stock for 125 consecutive years.
“Union Pacific has a strong track record of delivering cash returns to its shareholders,” said Jennifer Hamann, executive vice president and chief financial officer. “We’re building on that record with a 3% increase in the third quarter, our 18th consecutive year of increased annual dividends per share.”
With current price $244.80 (today's open), this raise brings their dividend yield to 2.19%.
Union Pacific Corporation is a Dividend Contenders with a 18 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 2.4, 10.3, 11.2 and 13.4 (Dividend Champions.xls)
Since I own 22 shares of UNP, this will increase my portfolio's projected annual net dividend income by $2.62.
UNP's last dividend increase was in May 2022,, so this 3% increase was really disappointing. Of course, better than nothing and maybe UNP will return to reasonable increases in the future.
This is the fourth 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 modestly from $0.97 to $1.34 or 38.1%.
This increase raises my yield on cost to 3.32%.
Summary of 2024 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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