#7 - Matson, Inc (NYSE:MATX)
Matson, Inc is a small-cap dividend play for the economic rebound. The company operates in two primary segments with one servicing ocean transport/freight to/from U.S. territories and possessions in the Pacific and the other brokering similar services to those in need.
Matson, Inc surprised investors over the summer when it followed through on plans to increase the dividend. With economic activity impacted by the pandemic, it was a safe assumption the company would take steps to mediate that impact, and it did.
Moves like reducing the frequency of calls in lower-demand ports, a hiring freeze, eliminating discretionary costs, and a reduction of vendor costs put the company on track for EPS to exceed 2019 levels when it next reports. The move to raise the dividend should be a sign for investors that business, while impacted by the pandemic, is still strong.
Notably, Maton's China-centric businesses saw a marked increase in traffic upon China's economic reopening. Container volume increased 68% over the same quarter in the previous year. A comparable increase is expected in the U.S.-centric data when the company next reports.
About Matson
Matson, Inc, together with its subsidiaries, engages in the provision of ocean transportation and logistics services. It operates through two segments, Ocean Transportation and Logistics. The Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Japan, Alaska, and Guam, as well as to other island economies in Micronesia.
Read More - Current Price
- $139.27
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $138.00 (0.9% Downside)
Just look at the data. The Philadelphia Federal Reserve’s Manufacturing Business Outlook Survey is running at the hottest levels in years. Not the hottest levels since he pandemic started, but since before the trade war started.
That’s robust and other data backs it up. The Index of Leading Indicators rose 1.4% in August, that’s more than 1.0% in a single month, and signals an acceleration of activity is already underway.
The bottom line? America went back to work and is working harder than ever.
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