5 Most Profitable Dividend Stocks to Invest In Now

2. Union Pacific Corporation (NYSE:UNP)

Net Profit Margin: 29.2%

On June 5, Susquehanna analyst Harrison Bauer raised the price recommendation on Union Pacific Corporation (NYSE:UNP) to $305 from $290. The analyst reiterated a Positive rating on the shares. The firm said rail volumes appear to be tracking ahead of expectations. According to the analyst, ISM readings have been “encouraging,” with expansion continuing for five consecutive months. The firm also noted there is no indication that higher fuel costs are hurting industrial demand.

During Union Pacific’s Q1 2026 earnings call, CEO Vincenzo Vena said the company got off to a strong start in 2026, delivering record first-quarter results. He noted that Union Pacific posted record operating income and net income during the quarter. Vena pointed to the company’s profitability and operating efficiency, reporting net income of $1.7 billion and earnings per share of $2.87. He also said that, excluding merger-related costs, the operating ratio improved by 80 basis points to 59.9%.

CFO Jennifer Hamann reported that operating revenue increased 3% year over year to $6.2 billion. She added that freight revenue rose 4% to $5.9 billion despite a 1% decline in volume. Hamann also said operating expenses increased 3% to $3.8 billion, driven by inflationary pressures and merger-related activities. She noted that productivity gains helped offset part of those costs. The company achieved record first-quarter workforce productivity, allowing it to operate with a workforce that was 5% smaller than a year earlier.

Union Pacific Corporation (NYSE:UNP), through its principal operating company, Union Pacific Railroad Company, operates a rail network that connects more than 23 states across the western two-thirds of the United States, serving as a key link in the global supply chain.