4. Matson, Inc. (NYSE:MATX)
Dividend Yield as of October 4: 1.90%
Matson, Inc. (NYSE:MATX) is a Hawaii-based shipping and navigation services company that provides related services across the Pacific. In July, Stifel maintained a Buy rating on the stock as the company could benefit from the Ocean Shipping Reform Act. The act was expected to control the supply chain blockages.
At the end of June 2022, Matson, Inc. (NYSE:MATX) reported strong cash generation, with its operating cash flow standing at $691 million, up from $238.8 million during the same period last year. The company had $326 million in cash and cash equivalents, compared with $282.4 million in the prior-year period. It paid $25 million in dividends to shareholders during this period.
Matson, Inc. (NYSE:MATX) currently pays a quarterly dividend of $0.31 per share and has a dividend yield of 1.90%, as of October 4. The company last raised its dividend in June this year, taking its dividend growth streak to ten years.
At the end of Q2 2022, 25 hedge funds tracked by Insider Monkey owned stakes in Matson, Inc. (NYSE:MATX), up from 22 in the previous quarter. The collective value of these stakes is roughly $98 million.
Meridian Funds mentioned Matson, Inc. (NYSE:MATX) in its Q2 2022 investor letter. Here is what the firm has to say:
“Matson, Inc. (NYSE:MATX) is a US-based ocean and logistics company with a leading position in Pacific shipping that provides a vital lifeline to Hawaii, Alaska, and Guam as well as premium and expedited service from China to the US. Given its unique position and terminal assets, Matson has an unparalleled speed advantage over other ocean transportation companies. This speed advantage has been highly valuable to customers given supply chain disruptions which has helped improve inventory velocity. Although the company recently reported strong quarterly earnings growth, its stock declined on signs of slower shipping demand due to rising inventories within the consumer channel and improving port congestion. Given these dynamics, overall container rates have begun to recede from the robust levels experienced in 2021 but still remain at levels that are nearly 4x that of pre-pandemic levels. Although we expect container rates to continue to normalize, we believe the company’s unique speed advantage and increased service capacity between Asia and the U.S. could help offset some of these headwinds. Matson continues to generate strong free cash flow and has proven to be a strong allocator of capital, including increasing dividend payouts for shareholders and buying back stock. During the period, we trimmed our position in the company.”
