Saturday, August 17, 2019

Dividend raise: Union Pacific (+10%)

Three weeks ago Union Pacific (UNP) declared a $0.97/share quarterly dividend, which is a 10% increase from its prior quarterly dividend of $0.88. Since I own 15 share of UNP this raise adds about € 5 to my forward annual dividend income. This is a really solid dividend increase in my book, and it's its second raise this year!


I purchased my shares about 4 years ago for $108 a piece. Currently they are worth around $162, so that's roughly an 11% annual rate of return, based just on the price appreciation alone.

In the past years I've received about 10% of my original purchase price in dividends. The dividend has grown from $0,55 per share (quarterly) to its current level of $0,97 per share. That's an awesome growth rate of 14% each year. At this pace the dividend is expected to double in value about every six years! I am really content to have added this company to my portfolio a few years ago.
So far this year I've received 17 dividend raises which added almost $50 to my annual income stream.


















What do you think the dividend raise by UNP? Do you consider adding shares to your portfolio at its current price?

2 comments:

  1. There it is ADD! Way to benefit from the dividend increase right there. I own NSC and received a nice dividend increase as well.

    Bert

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    Replies
    1. Hi Bert, thanks for stopping by! Great to hear that NSC is making moves as well, best of luck with that!

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