Union Pacific Corp (NYSE:UNP)

CAPS Rating: 5 out of 5

Union Pacific is a leading rail freight carrier, its UP Railroad covering more than 32,000 miles in 23 states.

Recs

5
Player Avatar TheDumbMoney (58.51) Submitted: 11/4/2011 10:48:09 AM : Outperform Start Price: $46.24 UNP Score: +90.18

This is not about beating the market, at least in the short term. UNP is one of the few great companies as to which one can set up a TOTALLY FREE direct investment/drip plan. The plan is available at www.computershare.com.

I initiated with a very small $250 investment (the minimum), and a $50 monthly auto-withdraw from my bank account that will start next month. I'm tagging this because today the first $250 was withdrawn from my bank account. There are zero fees for my investment purchases, and zero fees for reeinvestment of dividends. That's not to say I'll just buy any company because there are no fees involved. But I have no problem including this company in my little portfolio.

I'm not so concerned about a huge margin of safety here, because the amounts are small, and this is just intended to be a twenty-year drip. Note you'd ideally want dividend stocks like this a tax-free IRA. I buy like this because I already otherwise max out my yearly 401k and IRA contributions.

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Member Avatar truthisntstupid (93.47) Submitted: 11/5/2011 6:27:53 PM
Recs: 0

Hi, dtaf...
If you like the "no fee" part check out OKE and SCG, too. SCG acts as its own transfer agent, but OKE uses WFC.
They both offer no transaction costs and free dividend reinvestment.

Member Avatar TheDumbMoney (58.51) Submitted: 11/7/2011 8:22:48 PM
Recs: 0

truth, thanks, will look into it!

Member Avatar TheDumbMoney (58.51) Submitted: 10/15/2012 6:02:58 PM
Recs: 0

What ever happened to truthisntstupid? I miss that guy. Anyway, UNP drip has continued, $50/month every month, through today and ongoing. No fees whatsoever. Performing well so far, nearly one-year in.

Member Avatar TheDumbMoney (58.51) Submitted: 8/13/2013 9:19:02 PM
Recs: 0

$50/month DRIP has continued unabated. With capital gains and reinvested dividends I am somehow closing in $1800 invested in this company, after an initial purchase of only a couple hundred dollars or so.

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