Is NYSE:UNP suited for dividend investing?

Discover UNION PACIFIC CORP (NYSE:UNP)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:UNP showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Analyzing Dividend Metrics

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:UNP has been assigned a 7 for dividend:

• UNP's Dividend Yield is rather good when compared to the industry average which is at 1.63. UNP pays more dividend than 91.67% of the companies in the same industry.
• On average, the dividend of UNP grows each year by 11.21%, which is quite nice.
• UNP has been paying a dividend for at least 10 years, so it has a reliable track record.
• UNP has not decreased their dividend for at least 10 years, which is a reliable track record.

Unpacking NYSE:UNP's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:UNP has received a 4 out of 10:

• An Altman-Z score of 3.84 indicates that UNP is not in any danger for bankruptcy at the moment.
• UNP has a Altman-Z score of 3.84. This is amongst the best in the industry. UNP outperforms 80.56% of its industry peers.
• UNP has a better Debt to FCF ratio (6.35) than 77.78% of its industry peers.

How do we evaluate the Profitability for NYSE:UNP?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:UNP has achieved a 8:

• UNP has a Return On Assets of 9.50%. This is amongst the best in the industry. UNP outperforms 88.89% of its industry peers.
• UNP has a Return On Equity of 40.79%. This is amongst the best in the industry. UNP outperforms 100.00% of its industry peers.
• UNP's Return On Invested Capital of 11.29% is amongst the best of the industry. UNP outperforms 88.89% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for UNP is above the industry average of 7.75%.
• With an excellent Profit Margin value of 26.52%, UNP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
• The Operating Margin of UNP (38.02%) is better than 97.22% of its industry peers.
• UNP has a Gross Margin of 77.76%. This is amongst the best in the industry. UNP outperforms 86.11% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of UNP for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.