Union Pacific Pays 41% Of Its Profit As Dividend

Union Pacific Corporation

announced that its board has given its approval for a quarterly dividend of 55 cents per share on its common stock. That indicated that the company has paid 41% of its profit as the dividend. The payout ratio was higher than the five-year average payout ratio of 34.0%. According to Union Pacific, the dividend would be payable on June 30 to all the shareholders. The company has also fixed the record date of May 31 to determine the eligible shareholders. Union Pacific claimed that it paid dividends on its common stock for 117 straight years. The current dividend provided a yield of 2.6%, which was better than the five-year average dividend yield of 2.0%. For nine straight years, the company has been boosting its dividend. As a result, the five-year average dividend growth represented 26.1%. Shares of the company traded 0.6 percent down on Thursday.