Utah Medical Products, Inc. Announces Special Dividend
SALT LAKE CITY, Nov. 2, 2010 (GLOBE NEWSWIRE) -- Utah Medical Products, Inc. (Nasdaq:UTMD) announces that its Board of Directors approved a special cash dividend of ninety-six cents ($.96) per share of common stock payable on December 30, 2010 to shareholders of record at the close of business on December 15, 2010. The one-time dividend represents about a two percent (2%) increase over the cumulative cash dividends of ninety-four cents ($.94) paid during the most recent four calendar quarters.
A key long term UTMD business objective has been to maximize returns for its shareholders. In recent quarters, the Company has been paying out over half of its profits after corporate income taxes to shareholders.
Chairman Kevin Cornwell states, "I believe shareholders can view this $3.5 million special dividend in the following ways:
1) As almost half of UTMD's shareholders are individuals who are affected by personal income taxes on dividends, the special dividend removes uncertainty regarding the government's tax policy for next year. It represents what the board of directors estimates it probably would have declared as normal dividends for the next four calendar quarters, in effect, a prepayment of 2011 shareholder dividends. 2) The amount of the special dividend will reduce UTMD's cash and investment balances to about where they were a little over a year ago, even though in 2010 UTMD has already made regular quarterly dividend payments, repurchased shares in the open market, invested in facility expansion in Utah, invested in new technology and made other capital expenditures, all totaling nearly $5 million. We do not expect that the special dividend will impair UTMD's ability to continue similar investments or make an acquisition that will improve business activity, if one comes along that meets UTMD's investment criteria."Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected or expected.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV