I hear what everyone is saying, and they're valid points, but I still would feel more confident in the company if they themselves had the confidence to buy back their own shares in addition to paying a dividend.
Halve the dividend and take the other half to return outstanding shares to the company till.
The company has been on the constant decline, pricewise, since just after their IPO, and I see nothing that would make me want to buy more. I'll sit by idly and collect a dividend, but there's no way I buy more shares with it. If they were showing increased sales, if they were adding value to the company, if consumer confidence was increased, the price would be closer to what it was in 2008 than what it is now.
More power to those who continue to increase their own holdings. But holding is exactly what I'm doing.
It's could also be a tactic to try and get people to reinvest in more shares with their dividend ("Hey, I made $$$ on a dividend, why not buy more so I can get a bigger dividend next time?")
By paying out a dividend, you try and throw people off the scent of a potential SCAM.
If STV truly wanted to instill investor confidence, they would have used half (or more) of what they paid in dividend to buy back shares instead. If they really believed in their company, why wouldn't they want to hold more shares?
It could mean that there's strength, and it just as likely could mean that there's a SCAM in play.
Pump posts like this only make me more wary and less confident.