25 Best Dividend Stocks to Buy According to Billionaires

22. Union Pacific Corporation (NYSE:UNP)

Number of Billionaire Investors: 14

Dividend Yield as of March 3: 2.17%

Union Pacific Corporation (NYSE:UNP) is an American railroad holding company that transports a wide range of products and commodities, providing it with broad exposure across multiple industries. The company provides services to industries such as agriculture, automotive, and energy. In recent years, it has prioritized enhancing efficiency by expanding its revenue streams and broadening its geographic presence—both essential for staying competitive in the rail transportation sector.

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

Union Pacific Corporation (NYSE:UNP), one of the best dividend stocks, has been consistently paying dividends for 125 consecutive years and has raised its payouts for 18 years in a row. This dividend growth is due to the company’s strong cash position. In FY24, it generated over $9.3 billion in operating cash flow and it ended the quarter with over $1 billion available in cash and cash equivalents. The company’s quarterly dividend comes in at $1.34 per share and has a dividend yield of 2.17%, as of March 3.