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What Makes Union Pacific’s Railroad Network Hard to Replace

Union Pacific Corporation (NYSE:UNP) is one of the Best Wide Moat Dividend Stocks to Invest in.

An intermodal container train winding through a rural landscape.

Union Pacific Corporation (NYSE:UNP) is one of the largest railroads in North America, operating mainly in the western two-thirds of the US. It also connects with Canadian rail networks and serves all six major gateways to Mexico. While it might seem vulnerable to trade tensions, the company has solid earnings and guidance, even as many others lowered theirs.

Union Pacific Corporation (NYSE:UNP) divides its freight revenue into three main segments: bulk, industrial, and premium, each contributing about a third of total freight income. Its diverse product mix and low operating costs help it stay resilient even during periods of higher tariffs. The company continues to demonstrate strong efficiency and return on invested capital. A high operating margin reflects its ability to generate strong profits after covering operating expenses.

Union Pacific Corporation (NYSE:UNP) intends to invest $3.4 billion in 2025 to enhance safety, upgrade infrastructure, and support customer growth. This breaks down to over $9 million per day spent on improving rail operations and driving economic and supply chain activity across the 23 states it serves, benefiting local, regional, and national economies.

The company’s vast and intricate rail network is tough to replicate because of its size, the complexity of its connections, the specialized equipment it uses, and the major time and cost involved in building and maintaining such infrastructure.

Union Pacific Corporation (NYSE:UNP) has been paying uninterrupted dividends to shareholders for the past 125 years, while growing its payouts for 18 consecutive years. The company offers a quarterly dividend of $1.34 per share and has a dividend yield of 2.35%, as of June 24.

While we acknowledge the potential of UNP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Dividend Stocks for a Bear Market and 10 Best Dividend Stocks to Buy for Dependable Dividend Growth.

Disclosure. None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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