Dividend Paying Stocks in Railroads: The Case for Union Pacific Corporation (UNP)

Union Pacific Corporation (NYSE:UNP) is included among the 12 Best Dividend Paying Stocks to Buy Now.

Dividend Paying Stocks in Railroads: The Case for Union Pacific Corporation (UNP)

Union Pacific Corporation (NYSE:UNP) ranks among the largest railroad operators in the United States. Over the years, the holding company has purchased several railroads and combined them under its main subsidiary, Union Pacific Railroad. Today, its network covers 23 states and spans more than 32,000 miles, handling bulk, industrial, and premium freight shipments.

In May 2025, Union Pacific Corporation (NYSE:UNP) wrapped up testing of its first hybrid battery-electric locomotive. These new locomotives are projected to use up to 80% less fuel compared with standard diesel models.

In addition to its ongoing projects, Union Pacific Corporation (NYSE:UNP) is a strong dividend company. It has been paying uninterrupted dividends to shareholders for the past 125 years and has raised its payouts for 19 years straight. The company offers a quarterly dividend of $1.38 per share and has a dividend yield of 2.50%, as recorded on September 18.

While we acknowledge the potential of UNP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNP and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.