Posted by Nate on February 25, 2001 at 14:51:34:
No corporation ever has to pay dividends. In fact, most of the S&P 500 do not pay a dividend at all. The key is that the money left in the corp. must be necessary for the conduct of the business - i.e. must be reinvested, it can’t just sit in a surplus bank account unless there is a good reason - such as a future expense you are likely to incur.
A good accountant can guide you on this.