With cash flow strong, UP ups dividend 26%
Written by William C. Vantuono, Editor-in-ChiefUnion Pacific’s board of directors voted Thursday to increase its quarterly common share dividend by 26% to 60 cents per share, payable Jan 2. to stockholders of record on Nov. 30.
“We’re generating record free cash flows and making significant capital investments to add value for customers, all of which is driving improved shareholder returns,” said Jim Young, Union Pacific chairman and CEO (pictured at left).
“We remain confident in our business strategy going forward, allowing us to increase the dividend for the second time this year,” Young said. “Dividends per share in 2011 have increased a total of 58%, a significant step toward achieving our target payout ratio of approximately 30% on a declared basis.”
Young noted that Union Pacific has paid dividends on its common stock for 112 consecutive years.
