While a somewhat off-the-radar idea, this stock may offer investors the perfect sector idea now. Matson Inc. (NYSE: MATX) provides ocean transportation and logistics services. Its Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, as well as to other island economies in Micronesia.
The company primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, e-commerce and other retail merchandise.
This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan. It provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance and other terminal services to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, as well as in the Alaska locations of Anchorage, Kodiak and Dutch Harbor.
In addition, Matson offers vessel management and container transshipment services. Its Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load consolidation and freight forwarding services; warehousing and distribution services; supply chain management services; and non-vessel operating common carrier freight forwarding services. The company serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers and other customers.
Investors receive a 1.65% dividend. That dividend is expected to increase to $0.36 per share from $0.30. The $131 Stifel target price compares with a $118 consensus target. The stock was trading at $74.77 Tuesday morning.
This dividend-paying real estate investment trust is a strong play in an inflationary environment. Saul Centers Inc. (NYSE: BFS) is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. It currently operates and manages a real estate portfolio of 60 properties, which includes 50 community and neighborhood shopping centers, seven mixed-use properties with approximately 9.8 million square feet of leasable area, and three land and development properties. Approximately 85% of the Saul Centers’ property operating income is generated by properties in the metropolitan Washington/Baltimore area.
The company posted solid earnings, and large institutional investors have added the shares as expectations going forward have strengthened. Plus, the strong presence in the nation’s capital area is a plus as the economy remains strong due to the omnipresent government spending and high net worth consumers.
The current dividend yield is 5.31%. The company is expected to raise the $0.57 per share dividend to $0.59. B. Riley Securities has set a $54 target price. The consensus target is $53.33. The stock was last seen at $42.97 a share.
These four top companies have stocks rated Buy across Wall Street, and they are expected to lift the dividends they pay to shareholders. Not only is increasing dividends and returning capital to investors important, but it shows that the company is doing well and has the earnings and cash flow strength to increase those payouts.
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