Union Pacific: The Dividend Train Keeps Rolling
When I was younger one of my favorite board games to play was Monopoly. Don't ask me why because I couldn't tell you. Of course like any little boy, one of my favorite properties to own were the railroads. They were always a consistent source on income in the game.
With only a small position in Norfolk Southern (NSC) in my portfolio, I felt it was time to look at one of the largest railroad networks in the United States, Union Pacific (UNP), to see if I could start building out the railroad collection from my childhood.
The investment strategy that most appealed to me was dividend growth investing. That means finding companies that pay and grow their dividends to owners. The reason the strategy appealed to me was (1) who doesn't love getting paid for owning something and (2) the market can stay irrational longer than you would expect. By shifting the focus to dividends it keeps you satisfied when the market is irrationally depressed and the capital gains will eventually come if the business is of high quality.