Saturday, May 15, 2021

Dividend raise: Union Pacific (+10%)

Yesterdag Union Pacific (UNP) declared a $1,07 quarterly dividend, which is a 10% increase from its prior quarterly dividend of $0.97. Since I own 15 shares of UNP this raise adds about € 5 to my forward annual dividend income. This is a really solid dividend increase in my book! The last time they raised their dividend was back in the summer of 2019.

I purchased my shares about 6 years ago for $108 a piece. Currently they are worth around $228, so that's roughly an 13% annual rate of return, based just on the price appreciation alone.

In the past years I've received about 15% of my original purchase price in dividends. The dividend has grown from $0,55 per share (quarterly) to its current level of $1,07 per share. That's an awesome growth rate of 12% per year. With this pace my dividend has doubled in the last 6 years. I am really content to have added this company to my portfolio a few years ago.

So far this year I've received 19 dividend raises which added almost €80 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?

1 comment:

  1. What an awesome raise, DD! I do consider starting a position but not at its current price :). I have upgraded UNP from my watchlist to my wishlist.