How strong is your dividend growth portfolio? Send it to us for a free evaluation at dcm.team@growmydollar.com. 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 dcm.team@growmydollar.com.
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.
Disclaimer: This discussion is for educational purposes only and not investment advice.
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.
Popular Podcasts
CrimeLess: Hillbilly Heist
It’s 1996 in rural North Carolina, and an oddball crew makes history when they pull off America’s third largest cash heist. But it’s all downhill from there. Join host Johnny Knoxville as he unspools a wild and woolly tale about a group of regular ‘ol folks who risked it all for a chance at a better life. CrimeLess: Hillbilly Heist answers the question: what would you do with 17.3 million dollars? The answer includes diamond rings, mansions, velvet Elvis paintings, plus a run for the border, murder-for-hire-plots, and FBI busts.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.