Why Union Pacific (UNP) is a Top Dividend Stock for Your Portfolio

Company Overview - Union Pacific (UNP) is based in Omaha and operates in the Transportation sector, with a year-to-date share price change of 8.77% [3] - The company currently pays a dividend of $1.34 per share, resulting in a dividend yield of 2.16%, which is higher than the Transportation - Rail industry's yield of 1.47% and the S&P 500's yield of 1.49% [3] Dividend Performance - Union Pacific's annualized dividend of$ 5.36 has increased by 1.5% from the previous year, with an average annual increase of 8.44% over the last five years [4] - The company's current payout ratio is 49%, indicating that it pays out 49% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Union Pacific's earnings in 2025 is projected at $12.03 per share, reflecting a year-over-year earnings growth rate of 8.48% [5] Investment Considerations - Union Pacific is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]