I initiated this trade a few weeks ago when the transportation sector was getting clobbered due to commodity pricing at the time. Worked out great as short term headlines caused majority of these fantastic companies decline about 10%. There were quite a few good companies to choose from, but as a company UNP have been doing just outstanding. A true leader in railroad industry. Essentially, I decided to stay within the portfolio and build on my current position in UNP.
One fo Americas most recognized companies that links 23 states in the western two-thirds of the country by rail. Union Pacific Corporation has ownership in principal operating company of Union Pacific Railroad. It provides critical transportation role to global supply chain. It is has equally diversified business in agricultural products, automotive, chemicals, coal, industrial product and intermodal. Operates from West Coast and Gulf Coast ports to eastern gateways, connects Canada’s rail system and is the only railroad serving six major Mexico gateways. Union Pacific provides great deal of value to its roughly 10,000 costumers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.
- Dividend Yield: 2.0%
- 3Yr Dividend Growth Rate: 28.3%
- 5Yr Dividend Growth Rate: 29.4%
- Payout Ratio: 34.0%
- P/E: 18.6
- Consecutive Years of Dividend Raises: 5
I purchased 10 shares for the price of $107.32 adding $22.00 to my annual income.
This is the 4th time I am initiating an acquisition this year. Also, this recent transaction makes it a 3rd time I am adding to my UNP ownership. Currently, the stake represents to be around 5.3% of my current portfolio. This is an excellent weight for a single security in the portfolio. Though, what I really like about this company is that it is a true dividend grower. More specifically, UNP has been very aggressive the way they have been growing their dividend payouts. For example, since August 2013 they have been raising their dividends every 2 quarters, in comparison to regular dividend paying companies raises once every 4 quarters. And this has not just occurred once, there were 3 substantial dividend raises in the last 6 quarters. That shows that this company is committed rewarding their shareholders and hopefully one day grow to be the next generation of dividend champions.
The 12-month dividend income increased to $2,326.
Thank you for reading & have a great day!