people looking for dividend income buy stocks like this, helping the price of a stock that otherwise they would ignore because of volume, size, ease of reports to find. The dividend helps put in a floor. The other thing is that there is an IRS rule that would charge a 15% penalty if too much money is accumulated. As much as people tout AAPL cash hoard percentagewise to stock value this is higher. either they buy something expand or pay a dividend. I like the dividend and dont need the ego trip for another gone wild CEO. I would say a stock buyback would be good but there isnt enough stock now outstanding.
I've been following this stock for several years and owned it for a 2 year stretch from late 2008 to late 2010. As most here know FRD management is very conservative (which is a good thing), and they tend to be very careful with their cash position due to the cyclical nature of the steel manufacturing business. Be careful with dividend projections, if Nucor or US steel slow down production FRD's dividend would get hurt. In February of 2009 US Steel actually closed their Lone Star pipe plant, take a look at the chart to see what happened to FRD then...
My point is that FRD is a great company, but buying at these levels is probably buying at fair value or slightly above fair value. I'd love to take a position again, but will wait for something in the $5 range (which I may never see again, but who knows).
I've owned the stock for years, buying near 6 whenever possible. Remember, a new guy is running the show now, so maybe it will keep expanding. Personally, I wish they would buy back shares with all the cash.