#5 - Union Pacific (NYSE:UNP)
Union Pacific Corporation (NYSE: UNP) presents investors with a heads you win, tails you still win scenario. Shares of the railroad giant were up nearly 15% in 2023 despite expectations for weakening freight demand and lower energy prices that meant lower fuel surcharges.
2024 will undoubtedly have its share of surprises, but most analysts believe the Fed will lower interest rates at least a few times in 2024. That will spur demand and cause oil prices to rise. Both of those events will be bullish for Union Pacific. Perhaps in expectation of that, Union Pacific forecasts earnings to be up over 10% in 2024. That growth is not necessarily reflected in the UNP stock price.
And even if the economy continues to tread water or gets weaker, investors that take a position now can collect a dividend that has been growing at an annual growth rate of over 10% the last three years, has a yield of 2.18%, and an annual payout per share of $5.20.
About Union Pacific
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.
Read More - Current Price
- $248.32
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $258.79 (4.2% Upside)
