For Immediate Release
Chicago, IL – June 12, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Union Pacific Corp. UNP and Canadian National Railway Co. CNI.
Here are highlights from Thursday’s Analyst Blog:
2 Dividend Paying Stocks from the Railroad Industry You Should Count On
Prospects of the Zacks Transportation - Rail industry's participants are being weighed down by challenges like tariff-induced economic uncertainties, inflationary pressures and resultant high interest rates, as well as concerns pertaining to supply-chain disruptions. High fuel costs, due to the ongoing conflict in the Middle East, have been hurting the bottom-line growth of industry players.
Despite these headwinds, the industry has outperformed the Zacks S&P 500 Composite as well as the Zacks Transportation sector so far this year. Over this period, the industry has gained 18.1% compared with the S&P 500 Index's northward movement of 6.3% and the broader sector's surge of 10.5%.
Despite the challenges surrounding the industry, some railroad companies, like Union Pacific Corp. and Canadian National Railway Co., have consistently paid dividends to their shareholders, thus highlighting their pro-shareholder stance.
Dividend growth stocks generally belong to mature companies, which are less susceptible to significant market swings, and act as a hedge against uncertainty-induced stock market volatility, as is the case currently. They offer downside protection with their consistent increase in payouts.
Additionally, these companies generally have strong fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity and a strong balance sheet.
How to Pick Stocks With Solid Dividend Payouts?
Investing in dividend stocks is a prudent strategy that offers a dual advantage: steady income and a cushion against market volatility. It's no wonder investors actively seek companies with a consistent and growing dividend history. These stocks provide a reliable income stream, acting as a buffer during market downturns and contributing to overall portfolio stability.
To guide investors interested in the railroad industry, we came up with certain parameters using the Zacks Stocks Screener. We shortlisted transportation stocks based on the following:
a) A dividend payout ratio of less than 60% (the dividend payout ratio — dividends paid/net income — gives the proportion of earnings paid out as dividends to shareholders. A payout ratio below 60 looks quite sustainable).
b) A dividend yield of greater than 2% (dividend yield denotes the percentage of a company's share price that it shells out as dividends annually).
The selected stocks have exhibited dividend growth in the past five years, apart from currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Union Pacific: Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. Currently, UNP has a market capitalization of $158.54 billion.
UNP's quarterly dividend of $1.38 ($5.52 annualized) per share gives a 2.07% yield at the current stock price. The company's payout ratio is 46% of its earnings at present. The five-year dividend growth rate is 4.29%. (Check Union Pacific's dividend history here)
UNP has paid dividends on its common stock for 126 consecutive years, reflecting its pro-shareholder approach. Union Pacific's consistent initiatives to reward its shareholders through dividends and share repurchases look encouraging. In 2022, UNP paid dividends worth $3.16 billion and repurchased shares worth $6.28 billion. In 2023, the company returned $3.9 billion to its shareholders through dividends ($3.17 billion) and buybacks ($705 million). During 2024, UNP paid $3.21 billion in dividends and repurchased shares worth $1.50 billion. During 2025, UNP paid $3.23 billion in dividends and repurchased shares worth $2.67 billion.
Canadian National: Based in Montreal, Canada, Canadian National is involved in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. Currently, CNI has a market capitalization of $72.31 billion.
CNI's quarterly dividend leads to $2.67 per share (annualized), which gives it a 2.24% yield at the current stock price. This company's payout ratio is 49% of its earnings at present. The five-year dividend growth rate is 5.67%. (Check Canadian National's dividend history here)
CNI's consistent efforts to reward its shareholders via dividends and buybacks are encouraging and highlight the company's financial strength. In 2022, CNI paid dividends of C$2.00 billion and repurchased shares worth C$4.71 billion. In 2023, CNI paid dividends of C$2.07 billion and repurchased shares worth C$4.55 billion. During 2024, CNI paid dividends of C$2.14 billion and repurchased shares worth C$2.60 billion.During 2025, CNI paid dividends of C$2.20 billion and repurchased shares worth C$2.05 billion.
Such shareholder-friendly moves indicate the company's commitment to creating value for shareholders and underline its confidence in its business.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Union Pacific Corporation (UNP): Free Stock Analysis Report
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