15 Best Next Generation Dividend Aristocrats to Buy

8. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 85

Union Pacific Corporation (NYSE:UNP) is one of the best next generation dividend aristocrat stocks. The company’s capital investment approach focuses on strengthening its existing infrastructure to enhance safety and reliability, while also targeting specific projects to boost efficiency, productivity, and service quality. The strategy includes initiatives aimed at lowering environmental impact and improving the customer experience, all with an eye toward long-term growth.

Union Pacific Corporation (NYSE:UNP) maintains an industry-leading operating ratio and return on invested capital, with no changes to its long-term capital allocation framework. For the year, the company has outlined a $3.4 billion capital plan and expects to repurchase between $4.0 billion and $4.5 billion worth of shares.

The company reliably generates strong returns from capital projects like siding extensions, new mainlines, and terminal upgrades.  This disciplined approach supports Union Pacific Corporation (NYSE:UNP)’s well-regarded dividend policy. The company has paid regular dividends for 125 consecutive years and has increased its payouts for 18 straight years, drawing the attention of income-focused investors.

Alongside its dividend payments, Union Pacific Corporation (NYSE:UNP) has aggressively bought back its own shares, reducing its total share count by 31% since 2015.

The company currently offers a quarterly dividend of $1.34 per share and has a dividend yield of 2.4%, as of June 14.