Class 1 railroad Union Pacific (NYSE: UNP) isn't a stock that's likely to generate stellar returns from here , but that doesn't mean it can't be a useful option for income-seeking investors. Let's take a closer look at the pros and cons of being an investor in Union Pacific.
The investment case for buying the transportation stock is based on the following arguments:
In a nutshell, you can think of Union Pacific as a relatively safe "bond-like" investment with a superior yield to the current 10-year treasury note yield of just 0.7%, and with the prospect of earnings/dividend growth coming from the factors outlined above.
Source Fool.com