The Female Health Company
Market Cap: $165 million
YTD Performance: +28%
The Female Health Company (NASDAQ:FHCO) is a very small stock that averages less than 50,000 shares daily. But the strangeness of this stock makes it too enticing to leave out. FHCO actually is in the business of reducing risk for women through consumer health products that include the FC2 female condom. This isn’t some startup banking on a fad idea, though — Female Health is soundly profitable and has partnerships with institutions like public health clinics and not-for-profits. Who knew?
Whatever you think about the product, the stock has paid a 5-cent dividend like clockwork since 2010 and recently upped the ante to 6 cents a quarter in May. Sustained sales and profits since the company went public in 2009 show that while it hasn’t created a breakout product, FHCO can at least deliver consistent enough income to deliver a steady dividend.
That dividend is surely at risk if growth doesn’t continue, since Female Health is pushing a 100% dividend payout ratio. But investors who bought in a year ago have seen nice distributions as well as 35% share appreciation.