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EXPRESS MAIL: Union Pacific’s Surprise Merger Bid
Manage episode 497790197 series 3319824
How strong is your dividend growth portfolio? Send it to us for a free evaluation at [email protected]. Plus, join our market newsletter for more on dividend growth investing.
In what may be the largest M&A deal of 2025 so far, Union Pacific ($UNP) has made a formal bid to merge with Norfolk Southern ($NSC). The proposed merger not only furthers the consolidation of the quasi-monopolistic railroad industry but also raises important questions about what it means for investors. Given the time we’ve spent highlighting Union Pacific as a model of dividend growth, we believe this surprise announcement warrants an early-stage analysis.
In this Express Mail episode, Greg covers:
[01:12] Merger Details
Union Pacific makes a surprise $20B bid for Norfolk Southern—despite their past capital discipline.
[03:54] Financial Analysis: Debt, EBIT, and Credit Ratings
How the merger affects profitability, interest coverage, and debt loads.
[10:29] Lessons from Canadian Pacific’s Kansas City Merger
A similar deal that didn’t go quite as planned—and what it might signal for UNP.
[15:36] Dividend Outlook: What Now?
We break down whether the combined railroad can still deliver 7% dividend growth.
[17:59] Final Thoughts
Is Union Pacific now a total return story, not a dividend growth story? Why we’re holding through the uncertainty.
📩 Want your dividend portfolio reviewed?
Email a list of your holdings (no dollar amounts necessary) to [email protected].
We’ll rate it from 1 to 5 and include a few helpful bullet points to show how well you're aligned with long-term dividend growth principles.
If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review
RESOURCES:
Schedule a meeting with us -> Financial Planning & Portfolio Management
Getting into the weeds -> DCM Investment Reports & Models
Visit our website to learn more about our investment strategy and wealth management services.
52 episodes
Manage episode 497790197 series 3319824
How strong is your dividend growth portfolio? Send it to us for a free evaluation at [email protected]. Plus, join our market newsletter for more on dividend growth investing.
In what may be the largest M&A deal of 2025 so far, Union Pacific ($UNP) has made a formal bid to merge with Norfolk Southern ($NSC). The proposed merger not only furthers the consolidation of the quasi-monopolistic railroad industry but also raises important questions about what it means for investors. Given the time we’ve spent highlighting Union Pacific as a model of dividend growth, we believe this surprise announcement warrants an early-stage analysis.
In this Express Mail episode, Greg covers:
[01:12] Merger Details
Union Pacific makes a surprise $20B bid for Norfolk Southern—despite their past capital discipline.
[03:54] Financial Analysis: Debt, EBIT, and Credit Ratings
How the merger affects profitability, interest coverage, and debt loads.
[10:29] Lessons from Canadian Pacific’s Kansas City Merger
A similar deal that didn’t go quite as planned—and what it might signal for UNP.
[15:36] Dividend Outlook: What Now?
We break down whether the combined railroad can still deliver 7% dividend growth.
[17:59] Final Thoughts
Is Union Pacific now a total return story, not a dividend growth story? Why we’re holding through the uncertainty.
📩 Want your dividend portfolio reviewed?
Email a list of your holdings (no dollar amounts necessary) to [email protected].
We’ll rate it from 1 to 5 and include a few helpful bullet points to show how well you're aligned with long-term dividend growth principles.
If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review
RESOURCES:
Schedule a meeting with us -> Financial Planning & Portfolio Management
Getting into the weeds -> DCM Investment Reports & Models
Visit our website to learn more about our investment strategy and wealth management services.
52 episodes
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