CHICAGO, March 27, 2012 /PRNewswire/ -- The Female Health Company (NASDAQ-CM: FHCO) today announced that its Board of Directors has declared a quarterly cash dividend of $0.06 per share, for a 20% increase over its previous quarterly dividend rate of $0.05 per share. The dividend is payable May 9, 2012 to stockholders of record as of May 2, 2012. The Company began paying cash dividends in January 2010, and the second quarter dividend will represent the tenth consecutive quarterly cash dividend paid to shareholders.
"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. "The Company's profitability has generated cash from operations that exceeds the Company's capital spending requirements, and the Company remains debt-free. We believe that utilizing some of this excess cash flow to pay a higher rate of cash dividends is in the best interests of our shareholders. Based upon the closing price of our common stock on March 22, 2012, the new annualized cash dividend payout of $0.24 provides a current yield of 4.6% to shareholders."
Future quarterly cash dividends and the record dates for any such dividends must be approved each quarter by the Company's Board of Directors and announced by the Company. Payment of future dividends is at the discretion of the Board of Directors, which will base its decisions on operating cash flows, capital spending and other cash requirements, and other factors that may affect whether or not it believes the continued payment of dividends is in the best interests of the Company and its shareholders.