SupposeI am not sure how free cashflow compares to net income but lets say they base the dividend on net income. Last quarter their net was just over $11 million so 46 million annually. If you take 60% of that and pay it out as a dividend based on 154 million shares you get about $0.27/share which translates to a 14% yield. That makes no sense so the share price would need to rise or the dividend needs to drop. To bring the yield back to the 7% range (still high) the share price would need to rise to just over $2.50/shr. A yield of 4% bring the sp to $4.50.
Their previous largest dividend (from website) was $0.13 annually in 07and 08 which represented 28% and 49% of net income respectively. During those 2 years their stock traded at a high of $3.43 and a low of $1.30 toward the end of 08.
Be interested for someone else to run a calculation based on what was said during the conference call with respect to a dividend. Personally I doubt we will see a share buyback as the float is small. Just my opinion.