10 Best Wide Moat Dividend Stocks to Invest in

7. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 85

Union Pacific Corporation (NYSE:UNP) is one of the largest railroads in North America, operating mainly in the western two-thirds of the US. It also connects with Canadian rail networks and serves all six major gateways to Mexico. While it might seem vulnerable to trade tensions, the company has solid earnings and guidance, even as many others lowered theirs.

Union Pacific Corporation (NYSE:UNP) divides its freight revenue into three main segments: bulk, industrial, and premium, each contributing about a third of total freight income. Its diverse product mix and low operating costs help it stay resilient even during periods of higher tariffs. The company continues to demonstrate strong efficiency and return on invested capital. A high operating margin reflects its ability to generate strong profits after covering operating expenses.

Union Pacific Corporation (NYSE:UNP) intends to invest $3.4 billion in 2025 to enhance safety, upgrade infrastructure, and support customer growth. This breaks down to over $9 million per day spent on improving rail operations and driving economic and supply chain activity across the 23 states it serves, benefiting local, regional, and national economies.

The company’s vast and intricate rail network is tough to replicate because of its size, the complexity of its connections, the specialized equipment it uses, and the major time and cost involved in building and maintaining such infrastructure.

Union Pacific Corporation (NYSE:UNP) has been paying uninterrupted dividends to shareholders for the past 125 years, while growing its payouts for 18 consecutive years. The company offers a quarterly dividend of $1.34 per share and has a dividend yield of 2.35%, as of June 24.