Matson (NYSE: MATX) recently increased its quarterly dividend by 6.3% to 34 cents per share ($1.36 annualized). The first higher dividend will be paid on Sep 5, 2024, to shareholders of record as of Aug 1. This move reflects the company’s commitment to shareholder value, with a dividend yield of 1.06%. Matson has raised its dividend seven times in the last five years.
Chairman and CEO Matt Cox stated, “The increase reflects the strength of our business and confidence in our long-term free cash flow growth.” Matson, with a Zacks Rank #1 (Strong Buy), also engages in share repurchases and has a 5-year median return on capital of 14.3%.
In 2024, other transportation companies like FedEx (NYSE: FDX) and GATX Corporation (NYSE: GATX) have also raised their dividends. Dividend-paying stocks like Matson provide a stable income stream and are considered safe bets for wealth creation. Dividends act as a hedge against economic uncertainty.