What Does Union Pacific's Dividend Hike Mean For Railroads?
Zacks Investment Research | Nov 23, 2017 10:51PM ET
Last week, Union Pacific Corporation (NYSE:UNP) — one of leading players in the railroad space — announced a 10% hike in its quarterly dividend payout to 66.5 cents per share (annualized $2.66 per share). The first installment of the hiked dividend will be paid on Dec 28, 2017, to shareholders as of Nov 30.
The raised dividend highlights Union Pacific’s commitment to create value for shareholders and underscores the company’s strong financial condition as well as bright prospects, going forward. Moreover, a look at past records reveals Union Pacific’s stable dividend payment history.
Shareholder-Friendly Measures Highlight Strong Balance Sheets
Union Pacific is not the only railroad operator to have increased its dividend payout. Fellow railroad operators like Kansas City Southern (NYSE:KSU) , Canadian Pacific Railway Ltd. (NYSE:CP) and Canadian National Railway (NYSE:CNI) have also raised their dividend payouts this year. Additionally, the board of directors at Norfolk Southern Corporation (NYSE:NSC) cleared a new share buyback program in October 2017. The company is now authorized to buy back an additional 50 million shares through Dec 31, 2022.
These investor-friendly measures adopted by railroads clearly highlight the financial prosperity of stocks in the space. Additionally, the strengthened balance sheets of sector participants have made them invest substantially for promoting safety and enhancing productivity.
All the above-mentioned stocks carry a Zacks Rank #3 (Hold). You can seeOriginal post
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