Railroad operator Union Pacific (NYSE:UNP) announced today its third-quarter dividend of $0.79 per share, or 14.5% more than the $0.69-per-share payout to investors made last quarter.

The board of directors said the quarterly dividend is payable on October 1 to holders of record at the close of business on August 30. The railroad operator has paid dividends on its stock for 114 years.

Noting that the railroad's new dividend payout target range is 30% to 35%, Union Pacific CFO Rob Knight said, "We're generating strong cash flows and have confidence in our ability to continue to earn reinvestible returns on our diverse franchise opportunities."

The regular dividend payment equates to a $3.16-per-share annual dividend, yielding 1.9% based on the closing price today of Union Pacific's stock.

UNP Dividend Chart

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