13 Best American Dividend Stocks to Buy According to Analysts

9. Union Pacific Corporation (NYSE:UNP)

Upside Potential as of April 20: 15.27%

Union Pacific Corporation (NYSE:UNP) is an American railroad holding company, headquartered in Nebraska. The company transports a wide range of goods and commodities, providing exposure to multiple industries, including agriculture, automotive, and energy. It is one of the two main railroads serving the US West Coast, with a vast network that provides critical access to major Pacific ports. This makes it a key player in transporting goods imported from Asia across the country.

In the fourth quarter of 2024, Union Pacific Corporation (NYSE:UNP)  posted $6.12 billion in revenue, reflecting a slight 1% year-over-year decline. However, a 5% rise in revenue carloads helped cushion the impact. The railroad also improved its operating ratio to 58.7%, a 220-basis-point gain, despite a 70-basis-point drag from a newly ratified crew staffing agreement. Operating income climbed 5% to reach $2.5 billion.

Union Pacific Corporation (NYSE:UNP) has a long history of rewarding shareholders, with uninterrupted dividend payments for 125 years and 18 consecutive years of dividend increases. 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 equivalents. Currently, it offers a quarterly dividend of $1.34 per share and has a dividend yield of 2.43%, as recorded on April 20. With an upside potential of over 15%, UNP is one of the best dividend stocks according to analysts.