Railroad operator Union Pacific Corp (UNP) will raise its quarterly dividend by 10.3 percent to $1.07 per share in 2021. This is the first dividend hike announced by UNP since 2019, when the dividend was hiked two times for a total increase of 21.3 percent.

The next dividend is payable June 30, 2021, to shareholders of record May 28, 2021. A new annual rate of $4.28 per share yields 1.9% at a stock price of $227.86. The ex-dividend date for the next UNP dividend is May 27, 2021.

"I am pleased to report our dividend increase," said Jennifer Hamann, Union Pacific executive vice president and chief financial officer. "This increase is consistent with the financial guidance outlined at our recent Investor Day to target a dividend payout ratio of 45%."

Union Pacific Corporation is a railroad operating company. Union Pacific Railroad is the principal operating company of Union Pacific Corporation, connecting 23 states in the western two-thirds of the country by rail. The railroad's business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. The company operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways.  Union Pacific has paid dividends on its common stock every year since 1899.