The Female Health Company (Nasdaq: FHCO), today announced that its Board of Directors has declared a quarterly cash dividend of $0.05 per share. The dividend is payable May 12, 2010 to stockholders of record as of April 23, 2010.
In January, the Company announced the initiation of a cash dividend program and paid its first dividend on February 16, 2010.
"The Company's Board of Directors and management team believe that the payment of cash dividends allows shareholders to participate directly in the Company's success," stated O.B. Parrish, Chairman and Chief Executive Officer of The Female Health Company. "Our profitability has continued to improve during the past couple of years; we are generating cash from operations that exceeds the Company's capital spending requirements and remain debt free. We believe that utilizing some of this excess cash flow to pay cash dividends is in the best interests of our shareholders."
Any future quarterly dividends and the record date for any such dividend will be approved each quarter by the Company's Board of Directors and announced by the Company. Payment of future dividends is in the discretion of the Board of Directors, and the Company may not have sufficient cash flows to continue to pay dividends.