Union Pacific Corporation
UNPUnion Pacific Corporation (UNP) is a Industrials company that currently yields 2.06% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $197.98 and the overvaluation threshold at $268.70. Union Pacific Corporation holds a quality score of 70/100 (Good), reflecting 14 consecutive years of dividend growth with a 45% payout ratio. The 5-year dividend CAGR stands at 7.0%.
UNP Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 25.5% downside to reach the Weiss buy zone
Undervaluation starts near $197.98, where the annual dividend would imply roughly 2.77% yield. That is 0.71% above today's yield.
Buy-zone price
$197.98
Target yield
2.77%
Research checklist
What to clear before buying the yield
Updated May 25, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
45%Earnings coverage leaves room for noise.
Cash payout
81%Free cash flow coverage supports the payment.
Dividend growth
7.0%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-05-23 → 2026-05-25
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Union Pacific Corporation is trading near its historical overvaluation band.
Current yield 2.1% vs historical max 2.9% (72% of maximum).
14 consecutive years without a dividend cut.
Conservative payout ratio of 45%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 70/100 quality score calls for selective follow-up, not autopilot.
Start by checking whether payout coverage and business durability still support the dividend.
UNP Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$221
Year 10 Income
$526
Yield on Cost
5.47%
Total Income
$3,498
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗UNP Dividend Quality Score
Quality Score
Good
Key Metrics
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In-depth analysis
→ UNP Dividend Analysis Article