Spongetech Delivery Systems, Inc. (fka SPNGQ)

[cowtown jay]

Yes, shorts must pay dividends, if any declared.

http://en.wikipedia.org/wiki/Short_(finance)
"Other costs of shorting may include a fee for borrowing the assets and payment of any dividends paid on the borrowed assets."

http://www.fool.com/personal-finance/taxes/2002/12/06/dividends-paid-on-short-sales.aspx

"It's quite possible that one of the companies that you shorted was one that pays a cash dividend. Since you are likely borrowing the shares that you initially sold to create your short position, you are required to reimburse the lender of the stock for the dividends that he missed. Your broker probably notified you of that fact, and reduced your cash position in your account by the amount of the dividend."