Union Pacific Corp the No. 1 U.S. railroad, increased its quarterly dividend for the second time this year, citing its growing free cash flow.
The Omaha, Nebraska-based company said that it raised its dividend by 15 percent to 38 cents per share, payable Jan. 3.
“As we generate strong and growing free cash flow, we are returning more cash to our shareholders,” Chief Executive Jim Young said in a statement.
The annual dividend increase totals 41 percent, he said.
In October, Union Pacific reported quarterly earnings up more than 50 percent on surging business volume and revenue up 20 percent, and said it was ramping up hiring to handle volume. (Reuters)