Union Pacific Rewards Investors With 3% Dividend Payout

Core Insights - Union Pacific Corporation (UNP) has approved a 3% increase in its quarterly cash dividend, raising it to $1.38 per share from $1.34, reflecting a commitment to enhance shareholder returns [1][4][9] - The dividend will be paid on September 30, 2025, to shareholders of record as of August 29, 2025, marking the 19th consecutive year of increased annual dividends per share [1][9] - In 2022, UNP paid dividends of $3.15 billion and repurchased shares worth $6.28 billion, while in 2023, dividends were $3.17 billion with share repurchases of $705 million [2] - For 2024, UNP rewarded shareholders with dividends of $3.21 billion and repurchased shares worth $1.51 billion, and in Q1 2025, dividends amounted to $804 million with share repurchases of $1.42 billion [2][9] - The long-term capital allocation strategy for 2025 includes a capital plan of $3.4 billion and share repurchases ranging from $4 billion to $4.5 billion [3] Industry Context - Other companies in the transportation sector, such as Ryder System, Delta Air Lines, and FedEx, have also announced dividend hikes in 2025, indicating a broader trend of rewarding shareholders within the industry [5][6][8][10] - Ryder System increased its quarterly dividend by 12%, while Delta Air Lines raised its dividend by 25%, showcasing confidence in their financial positions [6][8] - FedEx Corporation approved a 5.1% dividend hike, further emphasizing the trend of dividend increases among transportation companies [10][11]