HONOLULU - Matson , Inc. (NYSE: NYSE:MATX), a prominent U.S. carrier in the Pacific, has announced an increase in its quarterly dividend to $0.34 per common share. This increment, a 6.3% rise from the prior dividend, will be payable on September 5, 2024, to shareholders on record as of August 1, 2024.
The company’s Chairman and Chief Executive Officer, Matt Cox, highlighted that this change signifies the twelfth consecutive year of dividend growth for Matson. The decision to increase the dividend reflects the company's robust business performance and its confidence in sustained long-term free cash flow growth.
Cox reaffirmed Matson's pledge to returning excess capital to its shareholders. This strategy includes executing share repurchases subsequent to funding dividends, while also investing in operational maintenance and growth opportunities, all within the framework of maintaining an investment-grade balance sheet.
Founded in 1882, Matson's services are crucial to the economies of Hawaii, Alaska, Guam, and other island regions in Micronesia, providing essential ocean freight transportation. The company also offers expedited shipping from China to Long Beach, California, services to Okinawa, Japan, and various South Pacific islands, and exports from Alaska to Asia.
Matson's fleet comprises containerships, combination container and roll-on/roll-off ships, and custom-designed barges. Through Matson Logistics, the company extends its transportation network's reach across North America and into Asia, offering a range of logistics services.
This announcement is based on a press release statement and includes forward-looking statements which involve certain risks and uncertainties. These statements are not guarantees of future performance and should be assessed alongside Matson's filings with the SEC, which disclose factors that could impact these forward-looking statements. Matson does not commit to updating any forward-looking statements provided.
In other recent news, Matson Corporation reported its Q1 2024 results, noting a better-than-expected performance in its Ocean Transportation segment and meeting expectations in Logistics. Despite lower volumes in Hawaii and Alaska, as well as a slight decrease in China service volume, Matson achieved higher average freight rates in China, contributing to a positive outlook.
The company raised its full-year outlook, expecting a modest increase in consolidated operating income compared to $342.8 million in 2023, primarily driven by the Ocean Transportation segment.
In addition to the financial results, Matson repurchased approximately 4.4 million shares for nearly $48.9 million. The company's Q2 operating income for Ocean Transportation is anticipated to exceed that of 2023, while Logistics is expected to be lower. The CapEx projection for 2024-2026 remains stable, focusing on Aloha Class vessels and market opportunities.
These are recent developments that underline the company's resilience despite the challenges in the market. Matson is also exploring potential mergers and acquisitions, maintaining a competitive stance in China and committing to reducing climate emissions. The company's approach suggests a proactive stance in managing both current operations and future growth prospects.
InvestingPro Insights
Following the recent announcement of Matson, Inc.'s (NYSE: MATX) dividend increase, a deep dive into the company's financials using InvestingPro reveals a solid foundation that supports the company's shareholder-friendly actions.
Matson's robust track record is reflected in its management's aggressive share repurchase strategy, signaling confidence in the company's valuation and future prospects. Moreover, the consistency in raising dividends, now for a remarkable 10 consecutive years, underlines Matson's commitment to shareholder returns.
InvestingPro data showcases Matson's strong financial position with a market capitalization of $4.49 billion and a Price to Earnings (P/E) ratio of 15.12. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at an even more attractive 14.73. Additionally, the company's gross profit margin for the same period is healthy at 20.13%, indicating efficient operations and strong pricing power.
Investors will also find Matson's stock performance reassuring, with a robust 71.5% return over the past year and a 16.36% return in the last three months. These figures exemplify the company's strong market performance and potential for continued growth.
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