12 Best Industrial Dividend Stocks to Invest in Now

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 93

Union Pacific Corporation (NYSE:UNP) is a US-based railroad holding company that transports a diverse range of products and commodities, giving it broad exposure across various industries, including agriculture, automotive, and energy. In recent years, the company has focused on improving efficiency by expanding its revenue sources and strengthening its geographic reach—key factors in maintaining competitiveness in the rail transportation sector.

In the fourth quarter of 2024, Union Pacific Corporation (NYSE:UNP) reported $6.12 billion in revenue, reflecting a 1% year-over-year decline. However, a 5% increase in revenue carloads helped offset some of the downturn. The company’s operating ratio improved to 58.7%, a 220-basis-point enhancement, despite a 70-basis-point impact from a crew staffing agreement ratification. Operating income rose by 5%, reaching $2.5 billion.

A strong cash position has allowed Union Pacific Corporation (NYSE:UNP) to remain one of the best industrial stocks that offer dividends. The company has consistently paid dividends for 125 consecutive years and has increased its payouts for 18 straight years. In fiscal 2024, it generated more than $9.3 billion in operating cash flow and ended the quarter with over $1 billion in cash and cash equivalents. Its quarterly dividend currently sits at $1.34 per share for a dividend yield of 2.25%, as of March 17.

Overall, Union Pacific Corporation (NYSE:UNP) ranks first on our list of best industrial dividend stocks. While we acknowledge the potential of UNP as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than UNP but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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