Companies generally don't have to pay dividends, but if they have always done so in the past and stockholders invested because of that history, a legal case can be made to force payment even if earnings are depressed.

Question

Quizplus · Accepted Answer

Dividends are typically at the discretion of a company's board of directors and there is no legal obligation to pay them, even if the company has a history of doing so. Shareholders cannot legally force a company to pay dividends.

Companies Generally Don't Have to Pay Dividends, but If They