Union Pacific: All Aboard The Dividend Train

Dividend | Stock | Investing | Valuation

Union Pacific (UNP) needs little introduction with their vast rail network consisting of 32K route miles, 26K of which are owned by Union Pacific. Their moat is built on those existing rail networks that would be near impossible without a Herculean undertaking and capital outlay to reproduce.

Dividend History

When I began investing on my own the dividend growth strategy just clicked for me. The idea is to focus on quality companies that have a history of paying and growing their dividends over time and don't pay too much.

UNP Dividend History

Image by author; data source Union Pacific Investor Relations

According to the CCC list, Union Pacific has a 15-year streak of annual dividend growth. While Union Pacific's dividend history has seen its share of bumps in the road, dividend growth has come more often than not each year.

Starting in 2000 Union Pacific has delivered annual dividend growth in 18 of the 21 years. Year over year dividend growth has ranged from 0.0% to 104.0% with an average of 21.2% and a median of 19.3%.

There's been 17 rolling 5-year periods over that time with annualized dividend growth ranging from 8.5% to 46.2% with an average of 22.6% and a median of 18.5%.

Over that same period there's been 12 rolling 10-year periods with annualized dividend growth ranging from 15.8% to 31.1% with an average of 25.2% and a median of 26.8%.

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