5 Safest Stocks To Invest In

3. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 89

Union Pacific Corporation (NYSE:UNP) is a leading and one of the largest railroad companies in the world. The company operates North America’s premier railroad franchise, with 8,000 locomotives that cover 32,000-mile routes that span over 23 U.S. states west of Chicago and New Orleans. Railroads are one of the most lucrative industries in the United States, and Union Pacific Corporation (NYSE:UNP) is expected to sustain its profitability in the years to come due to its market-leading position, which makes it rank among the top five safest stocks to invest in now.

Another reason why Union Pacific Corporation (NYSE:UNP) might be a safe bet for investors is the company’s young, but strong, dividend history. Union Pacific Corporation (NYSE:UNP) has been consistent with growing its dividends for 6 years now and as of June 9, the stock has a forward dividend yield of 2.27% and a 5-year dividend growth rate of 14.87%.

As of this April, Goldman Sachs analyst Jordan Alliger has a $276 price target and a Buy rating on Union Pacific Corporation (NYSE:UNP).

Hedge funds are raising their stakes in Union Pacific Corporation (NYSE:UNP). At the end of Q1 2022, 89 hedge funds were bullish on Union Pacific Corporation (NYSE:UNP) with stakes worth $7.03 billion. This is compared to 59 positions in the prior quarter with stakes worth $5.64 billion. The hedge fund sentiment for the stock is positive.

As of March 31, TCI Fund Management is the most prominent shareholder in Union Pacific Corporation (NYSE:UNP) owning over 5.25 million shares of the company. The fund’s stakes in the railroad giant amounted to $1.43 billion, which covers 3.89% of its investment portfolio.

Here is what ClearBridge Investments had to say about Union Pacific Corporation (NYSE:UNP) in its “Global Infrastructure Value Strategy” fourth-quarter 2021 investor letter:

“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. rail operator Union Pacific was among the lead performers. Union Pacific is the largest listed railroad company in North America. With a rail network of over 32,000 route miles connecting Pacific Coast and Gulf Coast ports with the Midwest and Eastern U.S. gateways, its freight transportation services are crucial to the functioning of the U.S. economy.”