Matson Rewards Shareholders With 5.9% Hike in Quarterly Dividend

In a shareholder-friendly move, Matson, Inc.’s (MATX) board of directorsapproved a dividend hike of 5.9%, thereby raising its quarterly cash dividend to 36 cents per share ($1.44 annualized) from 34 cents ($1.36 annualized). The raised dividend will be paid out on Sept. 4, 2025, to stockholders of record as of the close of business on Aug. 7, 2025. The move reflects Matson’s intention to utilize free cash to enhance its shareholders’ returns.

Matson, Inc. Dividend Yield (TTM)

Matson, Inc. dividend-yield-ttm | Matson, Inc. Quote

Matt Cox, Matson's chairman and chief executive officer, stated, "This announcement marks the thirteenth consecutive annual increase to Matson's quarterly dividend. The increase reflects the strength of our business and confidence in our long-term free cash flow growth. We will continue to be disciplined in our approach to capital allocation and are committed to the return of excess capital to shareholders through the execution of share repurchases after funding our dividend, supporting our operations with maintenance capital, and investing in growth opportunities, while maintaining an investment grade balance sheet."

Notably, MATX has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. During the first quarter of 2025, MATX paid dividends worth $11.3 million and repurchased shares worth $66.9 million. During 2024, MATX paid dividends worth $44.8 million and repurchased shares worth $199.1 million. During 2023, MATX paid dividends worth $45 million and repurchased shares worth $155.2 million. During 2022, MATX paid dividends worth $48 million and repurchased shares worth $397 million.

Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like MATX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty, like the current scenario. 

Matson’s management’s decision to increase its quarterly dividend payout reflects the company’s commitment to enhancing shareholder value, while also underscoring confidence in its business. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact thisZacks Rank #3 (Hold) company’s bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dividend Hike Announced by Other Transportation Companies in 2025

Matson is not the only player from the Zacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs in 2025.

To name a few, on June 19, 2025, Delta Air Lines, Inc.’s (DAL) board of directors approved a dividend hike of 25%, thereby raising its quarterly cash dividend to 18.75 per share (75 cents annualized) from 15 cents (60 cents annualized). The raised dividend will be paid on Aug. 21, 2025, to stockholders of record at the close of business on July 31, 2025. This marked DAL’s second dividend hike since reinstating payouts in June 2023 after a COVID-era suspension.

On June 9, 2025, FedEx Corporation’s (FDX) board of directors approved a dividend hike of 5.1%, thereby raising its quarterly cash dividend to $1.45 per share ($5.80 annualized) from $1.38 ($5.52 annualized). The raised dividend will be paid on July 8, 2025, to stockholders of record at the close of business on June 23, 2025.

Notably, FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. During the first nine months of fiscal 2025, FedEx paid dividends worth $1.01 billion and repurchased shares worth $2.52 billion.

Landstar System, Inc. (LSTR), concurrent with its first-quarter 2025 earnings release on May 13, 2025, announced a dividend hike of 11%, thereby raising the quarterly cash dividend to 40 cents per share from 36 cents per share. The raised dividend will be paid on June 24, 2025, to shareholders of record as of the close of business on June 5, 2025.

During the first quarter of 2025, Landstar purchased almost 386,000 shares for $60.9 million and paid $83.3 million to shareholders in the form of cash dividends. LSTR is currently authorized to purchase up to an additional 2,161,663 shares under its longstanding share purchase program.  

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