Nine Companies Announced Increased Dividends Friday ...

...including Union Pacific, and it was a big jump -- from 69 cents to 79 cents, and it still only pays 1.93%.

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With regard to that UNP dividend, Zacks is reporting:

The dividend hike reflects the company’s strong free cash flow and confidence in generating solid reinvestable returns for its shareholders. The regular dividend of 79 cents equates into an annual dividend of $3.16, which translates into a dividend yield of 1.94% based on the current market price.   

This is the second dividend hike by Union Pacific in the last one year after the railroad operator raised its quarterly dividend by 15% in Nov 2012 from 60 to 69 cents. The company has paid dividends on its common stock for 114 consecutive years. The recent hike dividend reflects an almost 150% increase in the last 3 years.

Investor confidence in Union Pacific was also solidified with its recent earnings beat. For the second quarter of 2013, the company reported adjusted earnings of $2.37, surpassing the Zacks Consensus Estimate of $2.35 and year-ago earnings of $2.10.