Acquisition UNP

Union Pacific Corp LogoSelling all of the stake in Baxalta Inc. (BXLT) has opened up better opportunities for the capital to work. I hate to hold on to dead assets, or even worse liability assets. The money is either working or not, simple as that. I much prefer live assets that generate at least multiple dividend yield figures. Therefore, the best opportunity I found was to invest into Union Pacific Corp. (UNP). I find the current price point of the company is exceptionally discounted and trades at bargain prices. The numbers speak for themselves when looked deeper. Though, what I really like about the railroad industry is lack of competition and huge competitive advantage. Also, the company has paid four constant quarterly dividends and should be raising the dividend next quarter. I don’t expect a huge increase due to unknown oil concerns in the future, but I do believe it will be another good raise. Either way, the money in Union Pacific Corp. (UNP) is going to working much harder than it ever could have with Baxalta Inc. (BXLT). 

One of 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: 2.9%
  • 3Yr Dividend Growth Rate: 28.3%
  • 10Yr Dividend Growth Rate: 22.3%
  • Payout Ratio: 38.9%
  • P/E: 13.0
  • Consecutive Years of Dividend Raises: 5

I purchased 13 shares for the price of $75.54 adding $28.60 to my annual dividend income.

This is the 14th time I am initiating a stock acquisition this year. This transaction is my additional purchase of UNP shares into the portfolio. As of today, I now hold 45 shares of UNP. Currently, UNP ownership stake represents to be around 5.1% of my current portfolio value.

The 12-month dividend income increased to $2,670.

Thank you for reading & have a great day!

 

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6 Comments

  1. FerdiS on December 28, 2015 at 18:49

    Nice buy, DividendVet! I recently added UNP to my DivGro portfolio. I’ll be looking at a good time to add shares in the near future. Thanks for sharing and have a great new year!

    FerdiS, DivGro

    • DividendVet on December 28, 2015 at 22:45

      Thanks and great job on the pick up as well, you can’t go wrong with the railroad oligopoly. Plus, the dividend increase coming up just sweetens things up. I am long on UNP.

      Take care.

  2. Income Surfer on December 29, 2015 at 09:15

    Nice buy Vet. We bought a slug of Union Pacific at $80 and are looking to add additional shares in the lower $70’s. I hope you have a good week and a great New Year!
    -Bryan

    • DividendVet on December 29, 2015 at 09:34

      Thank you. Just gotta keep reminding myself that I need to be buying when there is blood in the streets. Not the easiest thing to do, but the rest will take care of it self.

      Happy New Year to you too Brian!

      Best wishes.

  3. AAI on December 31, 2015 at 23:44

    Solid buy! I have been adding shares myself as I believe current prices offer compelling value.

    Happy New Year!

    • DividendVet on January 1, 2016 at 20:53

      Thanks, I think there are quite a few oil related companies where you can have uncertainty in this current market. That is not the case with UNP, as it is as solid of a business you can ever have interest in.

      Have a great New Year!

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