Taitron Components Inc. will begin issuing this month its first ever dividend for shareholders, the company announced.

The Valencia semiconductor and small electronic equipment developer and distributor will pay 2.5 cents on Feb. 28 to shareholders of record as of Feb. 13. The company has a policy targeting a dividend of 10 cents per year.

Follow up dividend declarations and establishment of future payment dates are subject to the Taitron board determining the dividend policy that is in the best interests of the stockholders, the company said.

Taitron announced the dividend after market close on Friday. Shares closed Monday down 1 cent, or just less than a percent, to $1.18 on the Nasdaq.