Why Union Pacific (UNP) is a Great Dividend Stock Right Now

Company Overview - Union Pacific (UNP) is based in Omaha and operates in the Transportation sector, with a year-to-date share price change of 4.26% [3] Dividend Information - Union Pacific currently pays a dividend of $1.34 per share, resulting in a dividend yield of 2.09%, which is higher than the Transportation - Rail industry's yield of 1.42% and the S&P 500's yield of 1.54% [3] - The company's annualized dividend of $5.36 has increased by 3.1% from the previous year, and over the last five years, it has raised its dividend three times, averaging an annual increase of 8.85% [4] - The current payout ratio for Union Pacific is 49%, indicating that it pays out 49% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2024, the Zacks Consensus Estimate for Union Pacific's earnings is $11.11 per share, reflecting a year-over-year growth rate of 6.32% [5] Investment Considerations - Union Pacific is considered a compelling investment opportunity due to its strong dividend performance and current Zacks Rank of 3 (Hold) [7]