Medifast (MED), a provider of clinically proven and easy-to-use weight-loss and weight-maintenance products and programs,  will start paying a quarterly dividend of 25 cents per share.

The initial quarterly cash dividend of $0.25 per share is payable on February 10, 2016 to stockholders of record as of the close of business on December 28, 2015. MED will have an estimated dividend yield of 3.3% based on Wednesday's close of $29.90.

"The initiation of a quarterly dividend reflects the conviction our Board of Directors and executive team have in the Company's ability to consistently generate cash," said Michael C. MacDonald, Medifast Chairman and Chief Executive Officer. "We remain committed to enhancing value for stockholders and are very pleased to return excess capital to them through a quarterly cash dividend while we maintain our existing stock repurchase program."

The company expects to maintain a program of paying dividends on a quarterly basis. However, the declaration of dividends in the future is subject to the discretion of the Medifast Board of Directors, who will evaluate the company's dividend program from time to time based on factors that it deems relevant.

Medifast is a manufacturer and distributor of healthy living products and programs. The company produces, distributes and sells weight loss, weight management, and healthy living products, and other consumable health and nutritional products. Its product lines include weight loss, weight management, and healthy living meal replacements, snacks, hydration products, and vitamins.