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  • Writer's picturePaul Gravina

All Aboard the Dividend Train

At Owls Nest passive income is at the core of our investing strategy. Union Pacific (UNP) fits the bill nicely so here are a few reasons we are actively investing in this company. UNP is a Dividend star with 15 consecutive years of dividend growth. Shares currently yield 1.89% and for Owls Nest even a stronger reason to buy is the $4.28 dividend payout for owning this company. UNP has a vast rail network consisting of 32K route miles, 26K of which are owned by Union Pacific. To repeat their operation would be almost impossible and would take years and massive capital to reproduce their rail operation. UNP has a 15-year streak of annual dividend growth with many more years on the horizon. Since the early 2000's UNP has delivered annual dividend growth in 18 of the 21 years.

A P/E ratio of 22 is good for this business and the market has a P/E ratio historically of between 14-16 so we think this is just a blue-chip long-term buy and hold.

Owls Nest Capital and why we are investing in Union Pacific Corporation
All Aboard the Dividend Train

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