Is Union Pacific Corporation (UNP) the Best Income Stock to Invest in Now?

From Yahoo Finance: 2025-05-10 04:09:00

Amid trade concerns and market volatility, investors turn to dividend-paying stocks for stability and income. Analysts advocate for dividend stocks, citing their income-generating potential and benefits during market downturns. Research shows dividends have historically contributed significantly to overall market returns, attracting investors seeking consistent income in uncertain environments.

Global dividend payments hit a record $1.75 trillion in 2024, with a 6.6% increase underlying. Companies worldwide are increasing payouts, reflecting investor interest in dividends. Janus Henderson forecasts global dividends to rise by 5.0% in 2025, reaching $1.83 trillion, highlighting the ongoing appeal of dividend-paying stocks.

Union Pacific Corporation (NYSE:UNP) ranks 3rd on the list of best income stocks to buy now. The company, a major US railroad carrier, boasts a strong cash position and a long-standing history of dividend payments and growth. While UNP shows promise as an investment, some deeply undervalued dividend stocks may offer higher returns in a shorter time frame.

Union Pacific Corporation (NYSE:UNP) posted flat revenue in Q1 2025 despite volume growth and pricing gains. The company remains a strong dividend stock, paying regular dividends for 125 years and growing payouts for 18 years. UNP’s quarterly dividend yield stands at 2.48%, making it an attractive option for income-seeking investors.

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