Union Pacific raises quarterly dividend by 3% to $1.38 per share

OMAHA - Union Pacific Corporation (NYSE:UNP) will increase its quarterly dividend by 3% to $1.38 per share, the company announced Wednesday. The dividend will be payable on September 30, 2025, to shareholders of record as of August 29, 2025. The increase brings the company’s dividend yield to 2.32%, according to InvestingPro data.

This marks the railroad operator’s 19th consecutive year of increased annual dividends per share. Union Pacific has maintained an unbroken record of dividend payments on its common stock for 126 consecutive years. InvestingPro analysis shows the company has consistently maintained strong dividend payments, with impressive gross profit margins of 55.7%.

"Union Pacific continues to drive strong and growing cash returns for our shareholders," said Jennifer Hamann, executive vice president and chief financial officer, in a press release statement.

Union Pacific operates in 23 western states, providing freight transportation services. The company connects customers and communities to the global economy through its rail network.

The announcement comes as part of the company’s ongoing capital return program to shareholders. Union Pacific’s board of directors approved the dividend increase during their meeting on Wednesday.

In other recent news, Union Pacific reported first-quarter 2025 revenue and earnings per share slightly below consensus estimates, primarily due to weaker-than-expected fuel surcharge revenue and underperformance in the "Other revenue" category. Despite this, the company reaffirmed its full-year 2025 outlook, highlighting strong underlying pricing. Meanwhile, Goldman Sachs downgraded Union Pacific’s stock from Buy to Neutral, citing potential economic challenges and increased costs as factors that could hinder growth. Loop Capital also adjusted its stance by lowering the stock price target to $200, maintaining a Sell rating, and noting the impact of tariffs on rail volumes.

Stephens analyst Justin Long reduced the price target for Union Pacific to $255 while maintaining an Overweight rating, emphasizing the company’s pricing power and operational expenditure improvements. During its Annual Meeting of Shareholders, Union Pacific saw the election of directors and the ratification of Deloitte & Touche LLP as its independent auditor. Shareholders approved executive compensation but voted against a proposed amendment to the clawback policy. Bernstein maintained an Outperform rating, citing Union Pacific’s strong pricing outlook and its readiness to benefit from changes in the truck market. These developments reflect a mix of challenges and opportunities for Union Pacific as it navigates current economic conditions.

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