Why Union Pacific (UNP) is a Great Dividend Stock Right Now

Union Pacific (UNP), a railroad company in the Transportation sector, is highlighted as a compelling dividend investment with a 2% yield and an annualized dividend of $5.68, up 4.4% year-over-year. The company has increased dividends 3 times over the last 5 years with an average annual increase of 7.19%. With a 45% payout ratio and expected earnings growth of 11.66% for 2026, UNP presents a strong dividend play, though it currently holds a Zacks Rank of #3 (Hold).