UP approves new share repurchase program

The board of directors of Omaha, Neb.-based Class I railroad Union Pacific has authorized the early repurchase of up to 120 million common shares by Dec. 31, 2020, approximately 15 percent of current outstanding stock.    The board of directors of Union Pacific Corp. has approved the renewal of its share repurchase program one year ahead of the previous deadline, the company said in a statement.
   Effective Jan. 1, 2017, the Omaha, Neb.-based Class I railroad has authorized the repurchase of up to 120 million common shares by Dec. 31, 2020, about 15 percent of current outstanding stock. Since announcing its initial program in January of 2007, UP has repurchased approximately 28 percent of its outstanding shares at an average purchase price of $59.63 per share, representing a total cost of nearly $18.2 billion.
   Meanwhile, the UP board also approved a 10 percent increase in the quarterly dividend to just over $0.60 per share, payable Dec. 29, 2016, to shareholders of record as of Nov. 30, 2016.
   “This new share repurchase authorization, along with the dividend increase, demonstrates Union Pacific’s continued long-term commitment to increasing shareholder value, while maintaining our strong, investment grade credit ratings,” UP Chief Financial Officer Rob Knight said in a statement.
   “Since the authorization of the current program in November 2013, the company’s strong cash flow has enabled us to increase our declared dividend over 50 percent and return almost $9 billion to shareholders through our repurchase program,” he added. “We have confidence in our continued ability to earn reinvestible returns on our diverse franchise opportunities. We expect to continue generating strong cash from operations to support our strategic growth capital investments, maintain balance sheet strength, and reward shareholders with strong returns.”