PNR vs UNP: Dividend Yield, Growth & Safety Comparison
PENTAIR plc (PNR) and Union Pacific Corp (UNP) are both in the Industrials sector, making them natural rivals for dividend investors. UNP offers a significantly higher 2.08% yield compared to PNR's 1.01%, a gap of 1.07%. For dividend growth, PNR leads with a 5-year CAGR of 13.6% versus UNP's 6.1%. Both stocks carry a "Safe" dividend safety rating. UNP is a Dividend Contender with 19 years of consecutive increases.
Key Metrics Comparison
| Metric | PNR | UNP |
|---|
| Dividend Yield | 1.01% | 2.08% |
| Annual Dividend | $1.00 | $5.44 |
| 5-Year CAGR | 13.6% | 6.1% |
| Payout Ratio | 25% | 45% |
| Consecutive Years | 0 | 19 |
| Price | $101.30 | $260.92 |
Yield Comparison
Union Pacific Corp (UNP) currently yields 2.08%, which is solid for the broader market. That's 1.07% more than PENTAIR plc (PNR), which yields 1.01%. In dollar terms, UNP pays $5.44/share annually versus PNR's $1.00/share.
Dividend Growth
Over the past five years, PNR has grown its dividend at a 13.6% CAGR compared to UNP's 6.1%. PNR: Dividend growth is accelerating — the 3-year CAGR of 23.1% exceeds the 5-year rate of 13.6% and the 10-year rate of 4.4%. UNP: Dividend growth is slowing — the 3-year CAGR of 2.3% trails the 5-year rate of 6.1% and the 10-year rate of 10.3%.
Dividend Safety
PNR's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x. UNP's dividend safety is rated "Safe." The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x. PNR's payout ratio of 25% is more conservative than UNP's 45%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in UNP generates approximately $208/year in dividend income, compared to $101/year from PNR — a difference of $107/year. At $100,000, that gap widens to $1070/year.
Verdict
- Best for income: UNP
- Best for growth: PNR
- Best for safety: PNR
Frequently Asked Questions
Which has a higher dividend yield, PNR or UNP?
Union Pacific Corp (UNP) has a higher dividend yield of 2.08% compared to PENTAIR plc (PNR) at 1.01%.
Is PNR or UNP a better dividend growth stock?
PENTAIR plc has the stronger dividend growth with a 5-year CAGR of 13.6%, compared to Union Pacific Corp's 6.1%.
Which is safer for dividend income, PNR or UNP?
PENTAIR plc's dividend safety is rated "Safe" while Union Pacific Corp is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x. The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x.
How much income does $10,000 in PNR vs UNP generate?
A $10,000 investment in PNR generates approximately $101/year in dividends, while the same amount in UNP generates about $208/year.
Is PNR or UNP a Dividend Aristocrat?
Union Pacific Corp is a Dividend Contender with 19 consecutive years of increases. PENTAIR plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, PNR or UNP?
PENTAIR plc has a lower payout ratio of 25% compared to Union Pacific Corp's 45%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PNR vs UNP: which is better for retirement income?
It depends on your priorities. UNP for current income, PNR for dividend growth, PNR for safety. Many retirement investors hold both for diversification.
PNR Dividend Analysis | UNP Dividend Analysis | All Comparisons | Comparison Tool