Union Pacific Corporation

UNP
Industrials
$265.88
2.06%Overvalued

Union 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

Underval. $197.98Overval. $268.70

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

14Y

Long 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

2026-05-232026-05-25

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

70/ 100

Good

Payout Ratio20/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History10/15
FCF Coverage5/15

Key Metrics

Current Price$265.88
Annual Dividend$5.48
Current Yield2.06%
Yield — Max (10Y)2.85%
Yield — Min (10Y)2.07%
Undervalued Below$197.98
Overvalued Above$268.70
Payout Ratio45.10%
CAGR Dividend 5Y7.0%
CAGR Dividend 10Y9.5%
Years No Cut14y

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14
consecutive years of dividend growth