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UP splits stock, increases capital spending
Profit-taking, in the finest tradition of E.H. Harriman; not by extracting cash from the road’s coffers in the form of dividends, but by capitalizing and recapitalizing until the value of the stock soars so high it splits. The cash from the coffers goes back into the railroad. That’s how super-railroads get built.
The second sentence in the first paragraph is incorrect. UP’s press release dated May 15 says, “Shareholders of record on May 27, 2014, will receive one additional share of Union Pacific common stock for each common share they hold as of this record date. The stock dividend will be paid on June 6, 2014.”
Hooray!!! Let’s do it again sometime in the near future.
I suppose this is good for me. I have some money in some fund or other that has UP as one of its holdings.
Great way to run a railroad!!!