Matson (MATX) Raises Quarterly Dividend 30.4% to $0.30, Announces 3M Share Buyback

June 25, 2021 6:43 AM EDT

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Matson (NYSE: MATX) declared a quarterly dividend of $0.30 per share, or $1.20 annualized. This is a 30.4% increase from the prior dividend of $0.23. The dividend will be payable on September 2, 2021, to stockholders of record on August 5, 2021, with an ex-dividend date of August 4, 2021. The annual yield on the dividend is 1.9 percent.

The Board also approved a share repurchase program totaling three million shares, or approximately seven percent of outstanding common shares. As of June 24, 2021, the authorization represents approximately $190 million of potential repurchases.

"We are pleased to announce this return of capital to shareholders," said Matt Cox, Matson's Chairman and Chief Executive Officer. "The substantive increase in the dividend and the initiation of a new share buyback program reflects our Board's confidence in long-term free cash flow growth. Last May we successfully launched a second expedited ocean service from China to the U.S. West Coast, the CLX+, to accommodate overwhelming demand for our original expedited China-to-Long Beach service. The success of the CLX+ service is expected to continue to be a driver in free cash flow growth."

Mr. Cox added, "After re-setting our dividend to this new level and providing maintenance capital expenditures to support ongoing operations, we will maintain our investment-grade balance sheet while also continuously seeking to acquire businesses and drive organic growth opportunities that meet our investment criteria. We will be both disciplined and opportunistic in our capital allocation, including the execution of share repurchases and aligning dividend decisions with growth in our long-term free cash flow. As always, we remain committed to return excess cash to shareholders as another means to create additional shareholder value over the long term."

For a dividend history and other dividend-related data on Matson (MATX) click here.

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