Union Pacific Stock Shares $68 Bil Success With Investors
In the last decade, Union Pacific (UNP) stock has returned a notable $68 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, UNP stock has returned the 38th highest amount to shareholders in history.
| UNP | S&P Median | |
|---|---|---|
| Dividends | $24 Bil | $4.5 Bil |
| Share Repurchase | $44 Bil | $5.7 Bil |
| Total Returned | $68 Bil | $9.4 Bil |
| Total Returned as % of Current Market Cap | 49.3% | 26.1% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $847 Bil | 19.9% | $141 Bil | $706 Bil |
| MSFT | $368 Bil | 10.1% | $169 Bil | $200 Bil |
| GOOGL | $357 Bil | 9.4% | $15 Bil | $342 Bil |
| XOM | $212 Bil | 42.4% | $145 Bil | $67 Bil |
| WFC | $212 Bil | 77.0% | $58 Bil | $153 Bil |
| META | $183 Bil | 11.2% | $9.1 Bil | $174 Bil |
| JPM | $181 Bil | 21.3% | $0.0 | $181 Bil |
| ORCL | $161 Bil | 28.3% | $34 Bil | $126 Bil |
| CVX | $157 Bil | 53.8% | $99 Bil | $58 Bil |
| JNJ | $157 Bil | 31.7% | $104 Bil | $52 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for UNP. (see Buy or Sell Union Pacific Stock for more details)
Union Pacific Fundamentals
- Revenue Growth: 1.1% LTM and 0.2% last 3-year average.
- Cash Generation: Nearly 24.5% free cash flow margin and 40.6% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for UNP was -1.2%.
- Valuation: Union Pacific stock trades at a P/E multiple of 19.9
| UNP | S&P Median | |
|---|---|---|
| Sector | Industrials | – |
| Industry | Rail Transportation | – |
| PE Ratio | 19.9 | 23.5 |
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| LTM* Revenue Growth | 1.1% | 6.1% |
| 3Y Average Annual Revenue Growth | 0.2% | 5.4% |
| Min Annual Revenue Growth Last 3Y | -1.2% | 0.2% |
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| LTM* Operating Margin | 40.6% | 18.8% |
| 3Y Average Operating Margin | 39.3% | 18.2% |
| LTM* Free Cash Flow Margin | 24.5% | 13.5% |
*LTM: Last Twelve Months
The table gives good overview of what you get from UNP stock, but what about the risk?
UNP Historical Risk
UNP isn’t immune to big drops. It fell 47% in the Dot-Com crash and nearly 60% during the Global Financial Crisis. The Covid selloff took about 39%, and even the 2018 correction knocked it down over 21%. The Inflation Shock saw a 32% dip. So, even solid stocks like UNP can face serious pain when markets turn sour. Stability helps, but sharp losses are always possible.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read UNP Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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