Union Pacific Corp. announced that its Board of Directors voted to increase the quarterly dividend on the company's common shares by 15 percent, or 12 cents, to 91 cents per share.
In a release on Feb. 6, the Company said that the increased dividend is payable April 1 to shareholders of record on Feb. 28. Union Pacific has paid dividends on its common stock for 115 consecutive years.
The Board also approved the Company's 2014 capital spending plan of approximately $3.9 billion, up about $300 million versus 2013, driven primarily by the acquisition of 200 locomotives compared to 100 locomotives purchased in 2013, and somewhat higher capacity investments. Spending on Positive Train Control is also expected to increase to $450 million, versus $420 million in 2013.
"This dividend increase demonstrates our confidence in Union Pacific's continued ability to generate growing cash returns on our diverse franchise opportunities," said Rob Knight, Union Pacific chief financial officer. "Our capital investments serve a critical role in supporting future cash generation and returns. The increased capital spending plan for 2014 also highlights our expectation of future volume growth across a wide range of markets in 2014 and beyond."
Union Pacific Railroad is the principal operating company of Union Pacific Corp.Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain.
From 2007-2013, Union Pacific invested more than $21.6 billion in its network and operations to support America's transportation infrastructure. The railroad's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products, and Intermodal.
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