It’s been a roller coaster market ride so far this December. I was so excited with my pickups of Kinder Morgan (KMI) last week, 100 shares at $20 and another 100 shares at $17.  However, after  this week’s dividend announcement I wish I had waited on buying. Having said that I am in it for the long haul, so barring any more bad KMI news I will hold most of my shares, possibly selling 150 if the stock hits $18 and with the remaining 200 shares, I’ll see what happens over the next 24 months.

Moving on to my latest buy. Yesterday I grabbed another 35 shares of Union Pacific, (NYSE: UNP), at a great price. I paid $75.91 per share which is just slightly above the stock’s 52-week low of $74.78. I get so excited when market conditions create an opportunity for me to average down my position. I now own 50 shares of UNP at a per share cost basis of $80.03. This purchase adds $77 to my annual dividend income.

Union Pacific Overview

Union Pacific Corporation operates through its principal operating company, Union Pacific Railroad Company. The Company is a Class I railroad operating in the United States, which has 31,974 route miles and maintains coordinated schedules with other rail carriers to move freight. It links 23 states in the western two-thirds of the country by rail, providing a supply chain link around the world. Its business mix includes agricultural products, automotive, chemicals, coal, industrial products and intermodal. The Company serves United States population centers, operates from West Coast and Gulf Coast ports to eastern gateways, connects with Canada’s rail systems and serves six Mexico gateways. The Company’s freight traffic consists of bulk, manifest, and premium business. Source: www.schwab.com.

Union Pacific Dividends

  • Annual Dividend Yield of 2.85%

  • Annual Dividend Rate (IAD) $2.20

  • Payout Ratio (TTM) of 37.02%

  • Dividend Coverage Ratio (TTM) of 270.10%

  • 3 Year Dividend Growth Rate of 25.6%

  • 5 Year Dividend Growth Rate of 28.7%

  • 10 Year Dividend Growth Rate of 20.3%

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