Or does S&W have it right by paying no dividend and keeping key cash resources in operations?
Ruger has no debt. SW has $102 million in debt. Ruger is making more money each year and has more NRA Firearms of the Year than SW. The dividends are the way to go, although I wouldn't object to them buying back some stock.
Ruger has zero reason to have divi problems since they always pay out/ giveback ~40% of earnings. SWHC should at least pay a token amount to shareholders to show good faith... at a minimum.