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No, corporations are not required to pay dividends on their stocks.

However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in order that those mutual funds might buy their stock.

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Q: Is payment of a dividend a requirement of a stock corporation?
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Related questions

Who is guaranteed a dividend in a corporation?

preferred stock holder...


What does the size of the dividend per share of stock depend on?

the corporation's profits


What is the effect of a stock dividend on a corporation's stockholders'equity accounts?

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.


Corporation has outstanding of 1000 shares of 8 commulative preferrd stock of 100 par what is the amount of prefrred dividend for the year before dividend declared to the common stock?

The total yearly dividend payable to preferred stock is 96000.


Is all dividend income received by one corporation from an investment in the common and preferred stock of another corporation is excluded from taxation?

U/s 10(34) of income tax, dividend mentioned u/s 115o are exempt from payment of income tax thereon. section 115o includes both preferred and equity dividend RECEIVED FROM INDIAN COMPANY.


Does the 70 percent dividend exclusion include preferred stock?

70 percent dividend income exclusion on the tax returns of corporations. That is, if a corporation owns preferred stock, it can exclude 70 percent of dividend income and pay income taxes on only 30 percent of dividend income, both preferred and common stock.


Are dividends a right or a privilege?

Stock dividends are a right if the company is in profit and the shareholders approve the dividend payment.


What is Oracle's stock symbol?

The stock symbol for software and technology company Oracle Corporation is ORCL.


What entity would physically process a stock dividend payment- The Issuing Company or the Stock Exchange or the Transfer Agent or the Clearing House?

Clearing House


The dividend exclusion for corporations receiving dividends from another corporation has resulted in?

stock investments being relatively more attractive relative to bond investments made by one corporation in another corporation.


A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?

A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?


How do you calculate ex-stock dividend price?

Ex-stock dividend is equal to the price of the dividend of the stock, the only difference is the face that the dividend is actually paid to the seller rather then the buyer of the stock.