5 Best Dividend Stocks According to Richard Chilton’s Chilton Investment Company

4. Union Pacific Corporation (NYSE:UNP)

Dividend Yield as of May 20: 2.43%
Number of Hedge Fund Holders: 59
Chilton Investment Company’s Stake Value: $231,572,000

Union Pacific Corporation (NYSE:UNP) is a Nebraska-based transport company and is the second-largest railroad in the US. It operates over 8,300 locomotives in over 23 US states. In Q4 2021, the company saw a decline in hedge fund interest. 59 hedge funds tracked by Insider Monkey held over $5.6 billion worth of stakes in Union Pacific Corporation (NYSE:UNP) in Q4. In comparison, 63 hedge funds held stakes in the company in the previous quarter, valued at $4.8 billion.

In April, Raymond James acknowledged the solid quarterly performance and improved service and expressed confidence that the company is well-positioned to benefit from the growing truck market. The firm lifted its price target on Union Pacific Corporation (NYSE:UNP) to $285, with a Strong Buy rating on the shares.

Chilton Investment Company initiated its position in Union Pacific Corporation (NYSE:UNP) in 2011 with shares worth only $2 million. The hedge fund has increased its position in the company over time and in Q1 2022, the company was the sixth-largest holding of the hedge fund. It held shares worth over $231.5 million in the company, which represented 5.56% of Richar Chilton’s portfolio.

In May 2022, Union Pacific Corporation (NYSE:UNP) announced a 10% increase in its annual dividend and pays a quarterly dividend of $1.30 per share. The company has been increasing its dividend for the past 15 years, falling into the category of Dividend Contenders. Moreover, Union Pacific Corporation (NYSE:UNP) has been offering dividends to shareholders on its common stock for the past 123 years, consecutively. As of May 20, the stock’s dividend yield stood at 2.43%.

ClearBridge Investments mentioned Union Pacific Corporation (NYSE:UNP) in its Q4 2021 investor letter. Here is what the firm has to say:

“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. These consistent growers were complemented by solid contributions from structural holdings including Union Pacific.”