10 Best Income Stocks to Invest in Now

3. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 93

Union Pacific Corporation (NYSE:UNP) is a Nebraska-based railroad company that transports a wide range of goods and commodities, providing exposure to multiple industries, including agriculture, automotive, and energy. The company is one of the two primary rail carriers operating along the US West Coast, with an extensive network that plays a vital role in linking major Pacific ports to the rest of the country. This strategic positioning makes it essential for moving goods arriving from Asia across the United States.

In the first quarter of 2025, Union Pacific Corporation (NYSE:UNP)’s revenue came in at $6.03 billion, which remained flat as 7% growth in volume and strong core pricing gains were offset by an unfavorable business mix, reduced fuel surcharge revenue, lower other income, and the effects of the leap year. Freight revenue rose by 1%, while freight revenue excluding fuel surcharges increased by 4%. Core pricing gains, after accounting for inflation, positively contributed to the operating ratio. The operating ratio held steady at 60.7% year over year, though lower fuel costs and the leap year had a 90-basis-point negative impact.

Union Pacific Corporation (NYSE:UNP)’s cash position came in strong. The company ended the quarter with $1.4 billion in cash and cash equivalents. In addition, it generated $2.2 billion in operating cash flow. It is one of the best dividend stocks on our list, as the company has paid regular dividends for 125 years, while growing its payouts for 18 years. The company’s quarterly dividend comes in at $1.34 per share and has a dividend yield of 2.48%, as of May 9.