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Hi-Tech Pharma declares special dividend of $1.50

AMITYVILLE, N.Y. (AP) -- Add one more company to the list of those paying one-time dividends in December: Hi-Tech Pharmacal Co.

The generic drug maker said Friday that it will pay a special dividend of $1.50 on Dec. 28 to shareholders as of Dec. 13.

A slew of companies have moved up their quarterly payouts or plan to pay special dividends as 2012 winds down. Investors are worried about potentially having to pay higher taxes on dividend income starting in January because of the "fiscal cliff."

The 15 percent maximum rate that investors have been paying on dividend income will expire this year, and could rise as high as 43.4 percent, as Congress and President Barack Obama struggle to compromise on a deal over taxes and government spending.

Hi-Tech Pharmacal is also confident in its ability to generate cash to fund future growth, said the Amityville, N.Y., company's CEO, David Seltzer.

Shares are down 20 percent this year