Masimo (Nasdaq: MASI) announced today that its Board of Directors has declared a special $0.75 per share cash dividend, payable on December 21, 2010 to stockholders of record as of the close of business on December 7, 2010. The total dividend payout is expected to be approximately $44.3 million, based on the current shares outstanding and will be the third instance of a special dividend paid by Masimo in the past four years.
Masimo Founder, CEO and Chairman of the Board, Joe Kiani, stated, "The special dividend is another step in demonstrating our commitment to enhancing stockholder value. The Board's decision to pay a dividend reflects our strong balance sheet, confidence in our long term outlook and capital structure. In addition, due to the uncertainty over potential changes in tax policy, the timing of this dividend will allow Masimo stockholders to take advantage of the current low dividend tax rate."
While dividends are not routine for the company, the company has previously paid special dividends to shareholders totaling $4.09 per share related to the 2006 intellectual property patent suit settlement agreement with a competitor and $2.00 per share in March 2010. While there can be no guarantees of future dividends, the Masimo Board remains committed to enhancing stockholder value based on its consideration of various factors, including the company's operating results, financial condition and anticipated capital requirements.