Matson increases quarterly dividend by 5.9% to $0.36 per share

HONOLULU - Matson, Inc. (NYSE:MATX), a $3.55 billion market cap ocean transportation company, announced today that its Board of Directors has declared a third quarter dividend of $0.36 per common share, representing a 5.9% increase from the previous quarter’s dividend. The company currently offers a 1.25% dividend yield and trades at an attractive P/E ratio of 7.08x.

The dividend will be paid on September 4, 2025, to shareholders of record as of the close of business on August 7, 2025, according to a press release statement from the ocean transportation and logistics services provider.

This marks the thirteenth consecutive annual increase to Matson’s quarterly dividend, the company noted. According to InvestingPro data, Matson has maintained dividend payments for an impressive 53 consecutive years, demonstrating a strong commitment to shareholder returns. InvestingPro analysis suggests the stock is currently trading below its Fair Value.

"The increase reflects the strength of our business and confidence in our long-term free cash flow growth," said Matt Cox, Matson’s Chairman and Chief Executive Officer.

Cox added that the company remains committed to returning excess capital to shareholders through share repurchases after funding dividends, maintenance capital for operations, and growth investments, while maintaining an investment grade balance sheet.

Matson, founded in 1882, provides ocean transportation services to Hawaii, Alaska, Guam, and other Pacific islands, as well as expedited shipping services from China to Long Beach, California. The company also operates logistics services throughout North America and Asia through its Matson Logistics division, established in 1987.

The dividend increase comes as part of the company’s capital allocation strategy, which prioritizes maintaining operations while returning value to shareholders.

In other recent news, Matson Inc. reported impressive first-quarter 2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $2.18 compared to the forecasted $1.71. Despite this positive earnings surprise, Matson’s revenue slightly missed expectations, coming in at $782 million against a forecast of $782.44 million. The company also experienced a significant year-over-year increase in net income, which rose by 100.3% to $72.3 million. However, Matson anticipates challenges ahead, projecting lower container volumes and freight rates in the second quarter and throughout 2025.

Stifel analysts recently downgraded Matson’s stock price target from $160 to $130, maintaining a Hold rating due to concerns about U.S. tariffs impacting the company’s China volumes. Matson’s management remains confident in their ability to adapt, emphasizing their strong transshipment partnerships and commitment to reliable supply chain operations. The company is also preparing for potential changes in tariffs and global trade, expecting a potential demand spike from restocking needs, although the timing remains uncertain.

Matson’s strategic flexibility and solid customer relationships are highlighted as critical factors in navigating the current market landscape. The company continues to focus on returning capital to shareholders through dividends and share repurchases. Despite the challenges, Matson is well-positioned to generate a normalized free cash flow of approximately $13 per share, according to Stifel’s analysts.

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