Union Pacific (UNP) Raises Quarterly Dividend 10% to $0.88, 2.2% Yield; Announces New Buyback Authorization

Union Pacific (NYSE: UNP) declared a quarterly dividend of $0.88 per share, or $3.52 annualized. This is a 10% increase from the prior dividend of $0.80.

The dividend will be payable on March 29, 2019, to stockholders of record on February 28, 2019, with an ex-dividend date of February 27, 2019.

The annual yield on the dividend is 2.2 percent.

Share Buyback Authorization

The Board today also approved a new share repurchase authorization, enabling the Company to buy up to 150 million of its common shares by March 31, 2022. The new authorization is effective April 1, 2019, and replaces the current authorization, which will now expire on March 31, 2019. The new authorization allows for the repurchase of 21 percent of current outstanding shares.

Since announcing its share repurchase program in January 2007, the Company has repurchased 38 percent of its outstanding shares at a total cost of approximately $31.9 billion, through February 6, 2019, with an average purchase price of $77.43 per share.

"The dividend increase and new share repurchase authorization are consistent with financial guidance we provided at our investor conference last year, including maintaining a dividend payout ratio between 40 and 45 percent and repurchasing approximately $20 billion of shares between 2018 and 2020," said Rob Knight, Union Pacific chief financial officer. "These actions demonstrate our confidence in Union Pacific's ability to continue growing cash returns for our shareholders."

The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise.

For a dividend history and other dividend-related data on Union Pacific (UNP) click here.

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