NEW YORK (Standard & Poor's) Nov. 19, 2003--Union Pacific Corp. (UP; BBB/Positive/A-2) today announced that its Board of Directors has voted to increase its quarterly dividend by 30% to 30 cents per share. This follows last year's 15% dividend increase. Standard & Poor's Ratings Services said the announcement has no impact on its rating or outlook on the company. While Standard & Poor's generally views dividend payments as negatives for bondholders, the dividend increase (approximately $70 million on an annualized basis) is relatively modest compared with UP's strong cash-generating ability and is not expected to jeopardize the financial profile of the company. Despite earnings pressures this year due to higher fuel prices, continuing economic weakness, and inefficiencies caused by understaffing
