Union Pacific boosts dividend, capital spending

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OMAHA, Neb. (AP) -- Union Pacific boosted its dividend 22 percent and decided to increase its capital budget by $100 million this year to help the railroad take advantage of the strengthening economy.

Union Pacific CEO Jim Young announced the changes Thursday at the railroad's annual meeting in Salt Lake City. Young says he feels confident about the railroad's prospects, because shipping volumes continue to grow.

Union Pacific will increase its dividend to 33 cents, up from 27 cents. The Omaha-based company said the dividend would be payable July 1 to stockholders of record on May 28.

The railroad's board approved increasing its capital budget for the year to $2.6 billion to buy additional shipping equipment.

And UP said it would resume repurchasing company stock.

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