UP Board approves $100 million in 2011 capex spending, dividend increase
Written by jrood
Union Pacific's Board of Directors has voted to increase the quarterly dividend on the company's common shares by 25 percent to 47.5 cents per share. The increased dividend is payable July 1, 2011, to stockholders of record on May 31, 2011. "Two weeks ago Union Pacific reported record first quarter earnings, building on the historic milestones we achieved in 2010," said Jim Young, Union Pacific chairman and chief executive officer. "We're generating record free cash flows and have confidence in our ability to capitalize on future growth opportunities and reward our shareholders. This dividend increase is a significant step toward our target payout ratio of approximately 30 percent." The Board also approved an additional $100 million of growth capital spending in 2011, increasing the full year capital investment plan to $3.3 billion. "Looking ahead, we feel positive about the long-term fundamentals of our business," Young said. "We are investing for safety, service, growth and productivity gains that will help us improve the value we provide to our customers and shareholders."
