They don't issue 8% of shares for the dividend. The guideline for the total dividend is 8% of income. This includes the F shares. The cash dividend for 2011 paid today is $.01 per share for holders 12/26/12.
That's a total of about $980,000.
I've been of the opinion that they must make these dividend payments, as a matter of credibility.
But I would prefer next year's 2012 cash dividend being cancelled, if and only if it were coupled with a solid statement of how new share issuance would be minimized.
Next year, the 2012 dividend will be declared with perhaps 4% being the cash portion. That's about $3M depending on outstanding shares at the time. If curtailing that expenditure for a year meant 6M less shares issued in 2013, and if it were coupled with other changes to financial/financing plans, the dilution problem could pretty much end.
This may have been one aspect the JF alluded too about possible changes, instead or in lieu of the bond deal.
Financial changes could include slowing growth; delaying one or two FF/CF equity purchases; selling any non-strategic asset (land?); licensing APM technology; building one FF without the equity buy back provisions, among others.
