It took a hit the first time they announced this. Is it a dilution that will make a difference? I doubt it. 8%-9% tax free should be a big enough incentive to most savvy investors, no? My guess is that it will fight it's way back up to the $6 area before long.
But isn't this another dilution? How long can they keep paying this dividend when they have more shares to which they have to pay it or if the entire amount paid does not increase, then the amount of the dividend will decrease. It doesn't seem to be sustainable if they continue to dilute the value of existing shareholders.