Union Pacific: This Dividend Growth Pick Is On Track For Success
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Treading SoftlyInvesting GroupFollow5ShareSaveCommentsSummaryUnion Pacific maintains a 'Buy' rating, supported by strong Q3 2025 results and reaffirmed high single-digit to low double-digit EPS growth guidance.UNP's operational excellence is evident with a 58.5% adjusted operating ratio and an improved 2.6x debt-to-EBITDA, supporting its A- credit rating.Shares remain undervalued at a 12% discount to fair value, offering a potential 20% total return by the end of 2026 and double-digit annual returns through 2030.UNP's 2.4% yield, robust payout ratios, and 19-year dividend growth streak position it for continued high-single-digit dividend increases and exceptional dividend safety. cokada/E+ via Getty Images Co-authored by Kody's Dividends As dividend growth investors, we prefer to fill our portfolios with companies that are of high quality. But how does one discern quality? Well, it's both an art and a science. I like to look for companies withThis article was written byTreading Softly3.79K FollowersFollowScott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, providing a robust total return.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kody is long UNPSeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.