OMAHA, Nebraska — Reuters reports Union Pacific Corp. on Thursday said it raised its quarterly dividend by 15 percent to 23 cents a share from 20 cents a share, citing brightening business prospects for the biggest U.S. railroad.
“Union Pacific’s business is in excellent shape. We’ve had a series of record-setting quarters, and through the third quarter our 2002 cash from operations has increased over 35 percent from a year ago,” Chairman Dick Davidson said. “This dividend increase not only rewards our shareholders, but is a clear signal of our confidence in the future of Union Pacific,” he said.
Omaha, Nebraska-based Union Pacific, which runs rail operations in 23 states and owns the Overnite trucking group, said in a statement that the increased common stock dividend would be payable Jan. 2 to stockholders on the books on Dec. 11. The company last month posted a 14 percent jump in third-quarter profits, including a one-time gain. Davidson said last week that Union Pacific expected earnings in the fourth quarter to match or exceed $1.06 a share earned during the October-December period in 2001.