The Rising Influence of Rising Affluence

[DewDiligence]

UNP Raises Dividend Again

[This is the second dividend boost in 2010. (UNP has paid dividends for 111 consecutive years.)]

http://www.reuters.com/article/idUSN1828505920101118?feedType=RSS&feedName=industrialsSector&rpc=43

›Thu Nov 18, 2010 10:34am EST

NEW YORK, Nov 18 (Reuters) - Union Pacific Corp (UNP) the No. 1 U.S. railroad, increased its quarterly dividend for the second time this year, citing its growing free cash flow.

The Omaha, Nebraska-based company said Thursday that it raised its dividend by 15 percent to 38 cents per share, payable Jan. 3.

"As we generate strong and growing free cash flow, we are returning more cash to our shareholders," Chief Executive Jim Young said in a statement.

The annual dividend increase totals 41 percent, he said.

In October, Union Pacific reported quarterly earnings up more than 50 percent on surging business volume and revenue up 20 percent, and said it was ramping up hiring to handle volume.

Robert W. Baird on Monday raised its view to "outperform" from "neutral" on Union Pacific.

The company's shares were up 2.3 percent at $91.94 on the New York Stock Exchange, near this year's high of $92.71.‹