STEI reported today that its Board of Directors increased the annual cash dividend on its Class A and Class B Common Stock by 12.5% to $0.18 per share, compared to the previous $0.16 per share. In addition, the Board declared a quarterly cash dividend of $0.045 per share payable on April 29, 2013 to holders of record of Class A and Class B Common Stock as of the close of business on April 15, 2013. This marks the third consecutive year in which the Board has increased the dividend.
Thomas M. Kitchen, President and Chief Executive Officer, said, "The Board's decision to increase the cash dividend reflects its continued confidence in our solid balance sheet, our ability to consistently generate strong cash flow, and the continued positive momentum in revenue growth. The Board last increased the dividend rate in March of 2012.
The name of the game for equities is capital appreciation, not income for shareholders!
STEI Directors should suspend their inappropriate share-buyback program at so far above
its Book Value because doing so makes the remaining shares less valuable.
As for the divident, its cash would be better used to reduce debt and/ or to make accretive acquisitions.
Dividends come out of shareholders' equity and weaken the company's financial strength.
If a dividend is paid nevertheless, it'd be better to do so annually rather than quarterly to save expenses.
STEI is a stable business that will eventually be sold at prices ABOVE the current market.
There is nothing whatsoever wrong with quarterly dividends and the stock buyback will just increase the ultimate per share proceeds that shareholders will get when the company is sold. (At $11.75-14.00+)
We get paid to wait. I appreciate the dividends.
There are thousands of stocks that dont pay dividends. Perhaps you should find one of them.
I also get quarterly dividends in SO and they have a nice little track record of paying dividends and increasing the share price.