Union Pacific announces 15 percent dividend increase and $3.9 billion capital plan for 2014
(Source: Union Pacific press release, February 6, 2014)
OMAHA, Neb. -- Union Pacific Corporation announced that its Board of Directors voted today to increase the quarterly dividend on the company's common shares by 15 percent, or 12 cents, to 91 cents per share. The increased dividend is payable April 1, 2014, to shareholders of record on February 28, 2014. Union Pacific has paid dividends on its common stock for 115 consecutive years.
The Board also approved the Company's 2014 capital spending plan of approximately $3.9 billion, up about $300 million versus 2013, driven primarily by the acquisition of 200 locomotives compared to 100 locomotives purchased in 2013, and somewhat higher capacity investments. Spending on Positive Train Control is also expected to increase to $450 million, versus $420 million in 2013.
"This dividend increase demonstrates our confidence in Union Pacific's continued ability to generate growing cash returns on our diverse franchise opportunities," said Rob Knight, Union Pacific chief financial officer. "Our capital investments serve a critical role in supporting future cash generation and returns. The increased capital spending plan for 2014 also highlights our expectation of future volume growth across a wide range of markets in 2014 and beyond."
Friday, February 07, 2014
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