Matson (MATX) Navigates Tariff Challenges While Maintaining Strong Dividend Record
Matson, Inc. (NYSE:MATX) is included among the 10 Best Beaten Down Dividend Stocks to Buy Right Now.
Photo by Vitaly Taranov on Unsplash
Matson, Inc. (NYSE:MATX) traces its roots to the late 1800s when it was established to connect the US West Coast with Hawaii. Over time, it has grown into one of the leading carriers serving US Pacific territories and Alaska, while also providing expedited shipping between the US mainland and China.
Matson, Inc. (NYSE:MATX) continues to face headwinds from market volatility and global trade uncertainty driven by tariffs. In the second quarter of 2025, operating income from its Ocean Transportation segment declined compared to the previous year, mainly due to lower shipping volumes in its China service. Freight demand dropped sharply in April following the introduction of tariffs, but began to recover by mid-May after the US and China reached a temporary agreement to reduce tariff levels.
Looking forward, management expects continued uncertainty surrounding tariffs, global trade policies, regulatory changes, and broader economic and geopolitical developments. For the third quarter of 2025, Matson, Inc. (NYSE:MATX) anticipates that Ocean Transportation operating income will be significantly lower than the $226.9 million reported in the same period of 2024, primarily as a result of weaker freight rates.
Despite these challenges, Matson, Inc. (NYSE:MATX) remains attractive to income-focused investors with 13 consecutive years of dividend growth under its belt. The company pays a quarterly dividend of $0.36 per share and has a dividend yield of 1.53%, as of October 16.
While we acknowledge the potential of MATX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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