Women (and their partners) are going to love the results of this exercise. At the correct intensity, it is very good for men as well because it is very functional and boosts post-exercise production of testosterone and growth hormone factor (both critical for losing fat and building lean muscle mass).
If you are comfortable with free-body squat, using dumbbells is a great way to add intensity to the exercise without making the exercise too difficult.
Important: keep your knees behind your toes to avoid troubles with your knees!
The lower you squat, the more benefits you will gain, but reaching the level of the knees with your bums is already pretty good.