Analysis – Union Pacific Corp. Increases Dividend by 10%

UNP

Union Pacific Corporation announced a regular quarterly dividend of $0.55 per share, a 10 percent increase from the prior rate of $0.50 per share.  The dividend will be paid at the new higher rate on March 30, 2015 to shareholders of record at close of business on February 27, 2015.

Date Quarterly Dividend
2/27/2015 0.55
11/28/2014 0.5
8/27/2014 0.5
6/12/2014 0.455
2/26/2014 0.455
11/29/2013 0.395
8/28/2013 0.395
5/29/2013 0.345
2/26/2013 0.345
11/28/2012 0.345
8/29/2012 0.3
5/29/2012 0.3
2/27/2012 0.3
11/28/2011 0.3
8/29/2011 0.237
5/26/2011 0.237
2/24/2011 0.19
11/26/2010 0.19
8/27/2010 0.165
5/26/2010 0.165
2/24/2010 0.135

Analysis of Valuation of Union Pacific Corp. (Symbol UNP).

Union Pacific is trading at the top of its average price/sale (P/S) range. Union Pacific is trading above its average dividend yield range.

Price 2/6/15 % Yield 5 Year Div. Growth Rate SPS 2015 P/S  Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
121.81 1.80% 11.5 28.20 4.17 1.17 4.17 2.00% 1.40%

Union Pacific Corp. Dividend Yield Chart (Click to enlarge)

UNP

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found

http://seekingalpha.com/author/timothy-mcintosh/articles

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s