Holy Mackerel -- Almost Missed This One -- Completely Unexpected -- July 26, 2019

Generally speaking, publicly traded companies announce dividend changes one a year (they generally declare dividends on a quarterly basis, but tend to increase/decrease dividends on a yearly basis).

Let's look at UNP. This is hard to believe.

Dividends:

• 11/17: $0.665
• 2/18: $0.73
• 5/18: $0.73
• 8/18: $0.80
• 11/18: $0.80
• 2/19: $0.88
• 5/19: $0.88
• declares for 8/18: $0.97 (see link)

I was not anticipating another change in the dividend for at least two more quarters. And remember: based on the Cass Freight Index, folks are forecasting:

• a recession by the end of the year
• decreased earnings for railroads

In late 2017, UNP was paying 66.5 cents/share. In August, 2018, UNP will be paying 97 cents/share. If a widow was receiving $50,000 / year in UNP dividends back in 2017, that widow is not anticipating almost $75,000 / year.

UNP shares are moving up nicely today.

Assuming UNP is a proxy for BNSF, can you even imagine how well Warren Buffett is doing today?

I haven't look at BRK-B in a long, long time. So, today, at 209, well off its 52-week high of $240 or thereabouts.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, career, or relationship decisions based on what you read here or think you may have read here in the last twelve years of blogging.

By the way, Norfolk Southern increased its dividend by a similar amount as UNP; NSC announced dividend increase today from 86 cents to 94 cents.