Buy Union Pacific on Price Dips

Union Pacific (UNP), a North American railroad, is trading at all-time highs. Its price chart shows the cyclical nature of its price pattern.

UNP has announced a two-for-one stock split and a share buyback program to purchase 20 million shares. In addition, UNP has doubled its dividend to $1.76 (1.20% yield) since 2002. This solid stock is a candidate for a dividend reinvestment portfolio.

But don't chase the stock at its current price. Wait to buy UNP until after it has corrected.

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Posted May 14, 2008.