Union Pacific Corporation Announces 3% Dividend Increase for Third Quarter 2024

Rhea-AI Summary

Union Pacific (NYSE: UNP) has announced a 3% increase in its quarterly dividend to $1.34 per share, payable on September 30, 2024, to shareholders of record on August 30, 2024. This marks the company's 18th consecutive year of increased annual dividends per share and continues its 125-year streak of paying dividends on common stock. Jennifer Hamann, executive vice president and CFO, emphasized Union Pacific's strong track record of delivering cash returns to shareholders, highlighting the company's commitment to maintaining its dividend policy.

Positive

• 3% increase in quarterly dividend to $1.34 per share
• 18th consecutive year of increased annual dividends per share
• 125-year streak of paying dividends on common stock

Negative

• None.

Insights

Financial Analyst

Union Pacific's decision to increase its quarterly dividend by 3 to $1.34 per share exemplifies a commitment to returning value to shareholders. This continuous dividend growth, marked by an 18-year streak of increases, highlights the company's financial stability and confidence in its future cash flows.

From an investment perspective, income-focused investors may find this news particularly appealing. A consistent dividend increase can serve as a sign of a well-managed company with strong earnings. However, a 3 increase is relatively moderate and may not significantly impact the stock price in the short term.

Investors should also consider the sustainability of such dividends. Union Pacific's ability to maintain and grow dividends depends on its operational performance and broader economic conditions, particularly as the transportation industry faces fluctuating demand and regulatory environments. Meanwhile, any significant market disruptions affecting Union Pacific's revenue streams could influence future dividend policies.

Market Research Analyst

The announcement reflects Union Pacific's strategy of steady and predictable shareholder returns. For retail investors, this consistency can be reassuring, especially in a volatile market. The 3 dividend increase, although modest, continues to build on the company's long-term credibility and attractiveness to dividend-oriented portfolios.

Union Pacific's performance is closely tied to trade volume and economic cycles. Therefore, investors might want to monitor macroeconomic indicators and shipping trends, as these factors can significantly impact the company's earnings and dividend feasibility. Additionally, the transportation sector's response to fuel price fluctuations and labor costs remains critical links to Union Pacific's financial health.

Looking at industry norms, Union Pacific's dividend yield remains competitive, providing an incentive for investors seeking stable income in a sector with substantial capital requirements and regulatory scrutiny.

OMAHA, Neb.--(BUSINESS WIRE)-- Union Pacific Corporation (NYSE: UNP) announced that its Board of Directors today voted to increase the quarterly dividend on the Company’s common shares by 3% to $1.34 per share. The dividend is payable September 30, 2024, to shareholders of record August 30, 2024. 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 18^th consecutive year of increased annual dividends per share.”

ABOUT UNION PACIFIC

Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240716674438/en/

Union Pacific Investor Contact: Brad Stock at 402-544-4227 or bkstock@up.com

Media Contact: Clarissa Beyah at 402-957-4793 or cbeyah@up.com

www.up.com

www.facebook.com/unionpacific

www.twitter.com/unionpacific

Source: Union Pacific Corporation

FAQ

What is Union Pacific's new quarterly dividend for Q3 2024?

Union Pacific's new quarterly dividend for Q3 2024 is $1.34 per share, representing a 3% increase from the previous quarter.

When will UNP pay its Q3 2024 dividend?

Union Pacific (UNP) will pay its Q3 2024 dividend on September 30, 2024, to shareholders of record as of August 30, 2024.

How long has Union Pacific been paying dividends on its common stock?

Union Pacific has been paying dividends on its common stock for 125 consecutive years.

How many consecutive years has UNP increased its annual dividends per share?

Union Pacific (UNP) has increased its annual dividends per share for 18 consecutive years.