Union Pacific reported strong Q3 earnings beating expectations with adjusted EPS of $3.53 and revenue up 15.3% to $7.20 billion. The company raised its quarterly dividend by 3% to $1.42, marking the 20th consecutive year of dividend increases, supported by solid cash flow and a payout ratio near 40%. However, share buybacks have nearly stopped as Union Pacific builds cash reserves ahead of its planned Norfolk Southern merger expected to close in 2027. While the dividend appears secure, income growth will mainly come from steady dividend raises, with risks including increased debt from the merger and rising fuel costs.
Union Pacific holds a market cap of $177.09 billion and offers a dividend yield of 1.91% as of Oct 23, 2026 19:31 WIB on Pluang. Despite the recent dividend raise, the stock saw a slight 0.29% decline in price, with all Pluang order activity currently on the sell side. Norfolk Southern, the planned merger partner, has a market cap of $75.97 billion and a dividend yield of 1.6%, trading down 0.27% at the same time.
