Why Union Pacific Corporation (UNP) is a Top Dividend Pick in the Industrial Sector

Union Pacific Corporation (NYSE:UNP) is included among the 13 Best Industrial Dividend Stocks to Buy Right Now.

The company has paid regular dividends to shareholders for 125 years in a row and has raised its payouts for 18 consecutive years. It currently pays a quarterly dividend of $1.34 per share for a dividend yield of 2.28%, as of July 13.

Union Pacific Corporation (NYSE:UNP), the railroad holding company, generates its freight revenue from three core segments— bulk, industrial, and premium— with each accounting for roughly one-third of the total. Its broad product offering and efficient cost structure help the company remain stable, even during periods of increased tariffs. Union Pacific consistently shows strong operational performance and a solid return on invested capital, with a high operating margin that highlights its ability to maintain profitability after expenses.

Looking ahead to 2025, Union Pacific Corporation (NYSE:UNP) plans to invest $3.4 billion to improve safety, upgrade infrastructure, and support customer growth. This equates to more than $9 million per day dedicated to enhancing its rail network and contributing to economic and supply chain development across the 23 states it serves, positively impacting local, regional, and national economies.

While we acknowledge the potential of UNP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 Best Dividend Aristocrat Stocks to Invest in Now and 10 Best Stocks to Buy For Dividends.

Disclosure: None.