OMAHA, Neb. (AP) — Union Pacific Corp. said Thursday that it plans to split its stock 2-for-1 and increase its capital spending this year.
The rail transportation company said that shareholders of record on May 27 will receive one additional share of Union Pacific stock for each share they hold. It will be paid in the form of a dividend on June 6.
In addition, the company's board declared a quarterly dividend of 91 cents, or 45.5 cents post-split, payable July 1 to shareholders of record June 16.
Union Pacific also said that its board has approved an additional $150 million for capital expenditures, bringing its total 2014 capital spending plan to $4.1 billion. It plans to use the extra money to acquire equipment and expand its capacity.
The company's CEO Jack Koraleski said that it is investing in a future that has "never been brighter."
Last month the railroad reported its first-quarter net income rose 14 percent despite harsh winter weather as it hauled more agricultural, industrial and coal shipments.
Union Pacific, based in Omaha, Nebraska, operates Union Pacific Corp. Its railroad connects 23 states in the western two-thirds of the country by rail.