15 Stocks to Invest in with Steady Dividends

12. Union Pacific Corporation (NYSE:UNP)

Upside Potential as of January 20: 10.88%

Union Pacific Corporation (NYSE:UNP) is an American transport company, headquartered in Nebraska. The company operates railroads, connecting 23 states. It is focusing on increasing mainline and terminal capacities by building new sidings and extending existing ones. These efforts are especially critical in growth regions like the Pacific Northwest, where the company is improving its handling of soda ash and grain exports, and the Southwest, where it is enhancing intermodal services. Moreover, the company is investing in advanced technologies like GPS tracking for containers and rail pulse systems to improve service reliability and provide customers with real-time tracking and better communication. The stock has surged by nearly 3% since the start of 2025.

In the third quarter of 2024, Union Pacific Corporation (NYSE:UNP) reported $6.01 billion in revenue, which saw a modest 1% rise compared to the same period last year. Freight revenue, excluding fuel surcharges, saw a 5% increase, driven by a 6% growth in revenue carloads. The company’s operating income also experienced an 11% boost, reaching $2.4 billion.

Union Pacific Corporation (NYSE:UNP)’s cash position also remained strong for FY24. In the first nine months of the year, the company posted an operating cash flow of $6.7 billion, which showed a growth from $5.9 billion in the same quarter last year. Free cash flow saw a notable increase, climbing to $1.8 billion from $955 million the previous year. The company has been a generous dividend payer, providing regular payouts to shareholders for the past 125 years. Moreover, it also maintains an 18-year track record of consistently growing its payouts, which makes UNP one of the best stocks with steady dividends. Its quarterly dividend comes in at $1.34 per share for a dividend yield of 2.27%, as of January 20.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 78 funds held stakes in Union Pacific Corporation (NYSE:UNP), compared with 82 in the previous quarter. These stakes have a total value of over $4.48 billion. With over 6.2 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.