Dividend Increase: UNP

Union Pacific (UNP) is increasing its quarterly dividend by 14.5%, from $0.69 to $0.79 per share (news release). A previous increase was announced in November 2012 but was effective with the January 2013 payment, so this is the second increase that takes effect in 2013. Given that I own 10 shares of UNP, my quarterly dividend increases from $6.90 to $7.90 and my yield on cost becomes 2.99%. The extra $4.00 in annual dividend income raises my forward 12-month dividend total to $2,507. Thus far this year, there have been dividend increases for 20 of the 28 stocks in my portfolio. (UNP had already been included in the total due to its previous increase.)