As I write this, Apple (AAPL) is the largest company by market cap to not pay a dividend.
With its cash generation capacity, does it make sense for Apple to continue to avoid paying dividends? The company has $24.7 billion in cash and short-term investments listed on its balance sheet. At some point, investors should begin pushing for Apple to follow examples of companies like Microsoft (MSFT) and Intel (INTC) and pay some portion on this cash flow back to investors. At the very minimum, it should re-purchase enough shares to limit dilution. Chad Brand is of a similar mind, calling for Apple to repurchase shares.
At a 30% cash flow payout, Apple shares would provide a yield of just over 2%. This would provide Apple with plenty of cash flow to continue its current rate of growth while enhancing the rewards to Apple shareholders. Apple had $5.8 billion in positive cash flow from operating activities last quarter, and could produce $14 billion for the year. If this cash cannot be invested by the company to compound returns at a reasonable rate, it should be returned to shareholders in some form or another.
Disclosure: I currently hold shares of Apple.